Air India seeks loan worth Rs 3,250 cr to fulfil working capital needs

The airline said that the guarantee is expected shortly, and will be valid for a period of one year or until the date of disinvestment

National passenger carrier Air India has invited bids from banks for Rs 3,250 crore government guarantee backed "Short Term Loans" (STLs).

The airline has called for financial bids by September 19.

"Air India is looking for Government Guarantee backed INR STLs totaling upto Rs 3,250 crore in the first phase to meet its urgent working capital requirements by 25th Sept 2017," the airline said in a tender document which was released on Wednesday.

"The tenure of the loan will be for a period of one year from the date of availing the STL. The amount... will be drawn in two or three tranches."

The airline said that the guarantee is expected shortly, and will be valid for a period of one year or till the date of disinvestment.