Air India Seeks Loan Of Rs.1,160 Crores To Modify Planes For VVIPs

The Logical Indian Crew

December 11th, 2017

Courtesy: Hindustan Times Image Credit: Patrika.com

India’s national carrier Air India is seeking a loan of over Rs 1,100 crore to upgrade and modify two Boeing aircrafts scheduled to be acquired next month, to cater to the VVIPs, according to official documents.

In a tender document, they asked for a bridge loan of USD 180 million, which at the current exchange rate, comes to Rs. 1,160 crores. The two Boeing 777-300 ER aircraft are to be delivered in January 2018.

The two Boeings are supposed to cater to the President, Vice President and the Prime Minister of the country. It is to be noted that Air India is already under a Rs. 50,000 crore debt.

What they said

“Government of India has indicated that they would issue its guarantee for the financing cost of modification of the two B777-300 ER aircraft for a period of 12 months or less,” the document issued last week said, according to Hindustan Times.

The loan would be availed from a period of January 2018 to April 2018. The first instalment to be paid is USD 135 million in the month of January. The remaining money would be acquired at a three-month instalment of 15 million each in February, March and April.

According to the airline, no commitment fee would be paid to the lender for the USD 180 million loans. “Prepayment/ short closure of the loan should be allowed without any extra cost to Air India as the loan would be repaid as soon as the funds are made available by Government of India,” it added

“The Indian Income Tax Act imposes withholding tax on interest payments to lenders outside India. The rate of withholding tax on interest payments will be considered in the financial evaluation of the offers to determine the all-in cost of your offer,” the document said.

Last Month

Once again, last month they sought a loan of USD 535 million to finance the acquisition of three Boeing planes, out of which two would be used to ferry VVIPs. According to the exchange rates, the amount is about Rs 3,450 crores.

Air India is already in a debt of Rs.55,000 crore and on top of that demanding a loan of Rs. 1,160 crore for VVIPs is probably not justified.

Share your thoughts..

Art Has The Power To Transform Lives

Related Stories

Another Case Of Bank Fraud: Chennai Based Jeweller Cheats Bank Of Rs. 824 Crore

Government Owes Rs 325 Crore To Cash Strapped Air India With Bills Pending For VVIP Chartered Flights

CBI Registers Rs 109 Crore Fraud Against Simbhaoli Sugars, Punjab CM’s Son-In-Law Among 13 Booked

Rotomac Owner Took Rs 2,919 Cr Loan To ‘Import Wheat’ That Was Never Imported

RBI

RBI Announces New Norms To Tackle Bad Loan

Maharashtra Loan Waiver

After UP, Maharashtra CM Announces Loan Waiver For Farmers

Latest on The Logical Indian

News

BJP Youth Wing Leader Boasts About Setting Fire To Rohingya Camp In Delhi, Complaints Filed

Environment

Kerala: This Bank Goes Beyond Its Duties And Helps 800 Villagers Learn Organic Farming

Legal

Seven Opposition Parties Move Impeachment Motion Against CJI; Submit Petition To Vice President With 71 Signatures

News

Gujarat HC Acquits Maya Kodnani From Naroda Patiya Case, Worst Massacre Of 2002 Gujarat Riots

Get Inspired

Manipuri Man Missing For 40 Years Reunites With Family Thanks To YouTube

World Affairs

Pilot Safely Lands Plane After Mid-Air Engine Blast, Saves Lives Of 143 Passengers