Air India seeks around Rs 43 billion from the government for FY17

Air India has sought Rs 33 billion under the turnaround plan and also asked to receive the backlog of Rs 9.77 billion which had already been sanctioned but not disbursed as budgetary support for 2016-17. The airline is surviving on a Rs 302.31 billion bailout package extended by the previous government in 2012, as part of a turnaround plan, which runs till March 2021. Of this amount, Air India has already received Rs 222.8 billion. Meanwhile, Air India plans to raise Rs 65 billion from Duetsche Bank through a sale and leaseback (SLB) arrangement for nine B787 aircraft. The SLB is likely to be for 12 years with an option to renew for three more years.

The Jawaharlal Nehru Port Trust (JNPT) has given an authorisation letter to SBI Capital Markets Limited (SBICAP) to issue a request for proposal (RfP) document to the qualified bidders for an external commercial borrowing (ECB) issue for the JNPT port connectivity project. The qualified bidders include Citibank, State Bank of India (SBI), ICICI Bank, Import Export Bank of India, DBS Bank Limited and Deutsche Bank (Singapore). SBICAP was appointed as the financial consultant and arranger for raising the foreign currency loan, on August 21, 2015. Subsequently, the request for qualification (RfQ) was issued on October 28, 2015 and six banks were qualified. According to the preliminary assessment, the total cost of the project is Rs 32 billion, of which Rs 24.44 billion is proposed to be raised through ECBs. JNPT is expected to obtain the ECB at an interest rate in the range of 3.5-4.5 per cent. The project involves widening of NH-4B, NH-4, State Highway (SH)-54 and Amra Marg to six/eight lanes in Maharashtra.