Air India receives Rs 1,000 cr from NSSF

Mumbai: Cash-strapped Air India has raised Rs 1,000 crore from the National Small Savings Fund and expects to mop up Rs 500 crore through short-term borrowings next week, an airline source said Thursday.

The ailing national carrier would be utilising the funds to mainly meet its working capital requirements.

The fresh funds are in addition to the Rs 980 crore received towards equity infusion by way of supplementary grants from the central government in September.

"We have received Rs 1,000 crore by way of loan from the National Small Savings Fund last week. This loan has been availed at a lower interest rate. However, we have to repay the the loan amount by March next year," the official said.

In early September, the carrier sought bids for garnering Rs 500 crore through short-term borrowings to meet its working capital requirements. The carrier had fixed September 10 as the deadline for submission of bids.

However, the deadline was extended the date to October 31 after it failed to get any response.