New Delhi: Air India will soon be raising USD 300 million via External Commercial Borrowing Route with the Central government providing it guarantee for the loan. The airline will mainly be utilizing the money for maintenance of aircraft and working capital requirements.
It will be the first time that the national Carrier will be raising funds through the ECB route. With the central government providing gurantee for the loan, The Air India will be raising nearly 300 million, Rs 1,900 cr in Indian Currency.
The Civil Aviation Ministry is expected to issue papers to the Air India by Thursday. The proposal has also received the approvals from the finance and the Law ministries the tenure of which is would be around 3-6 years.