After failing to attract bidders, AI seeks Rs 1,000 crore short-term loan

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New Delhi: Air India has invited bids for Rs 1,000-crore Short Term Loan (STL) from financial institutions and banks to meet its "urgent working capital requirements.

The national carrier, which recently failed to get even a single bidder for its disinvestment plan, has called for financial bids by June 13 for the tenure of one year.

"Air India is inviting bids for Government Guaranteed INR STL totalling to Rs 1,000 crore to meet its urgent working capital requirements," the airline said in a statement.

"The tenure of the loan will be for one year (renewable) from the date of availing the STL. The amount of Rs 1,000 crore will be drawn in June` 18 in one or more tranches. "The government of India guarantee is presently valid for one year," it added.

On May 31, the government had said no initial bids were received for the strategic disinvestment for the loss-making carrier.