National carrier Air India might soon get the USD 300 million (over Rs 1,900 crore @ Rs 64 to a dollar) loan through external commercial borrowing (overseas loans), the government will provide guarantee for the loan, a senior Civil Aviation Ministry official said on Wednesday.
The availability of these funds will be utilised by the state owned carrier for carrying out maintenance work on its aircraft and ensure that more aircraft can be used in its fleet to operate flights. his is the first time Air India is raising funds through the ECB route.
Reserve Bank of India had for the first time in April 2012 allowed the civil aviation sector to raise funds via the ECB route for a period of one year.
The government, which has committed a bailout package of Rs 30,000 crore till 2020-21, will pay only Rs 2,500 crore as promised under the package.
The UPA government had in April 2012 approved Air India’s turnaround plan, with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders.