Air India board to meet on Monday to finalise prepayment of Rs 12k-cr debt

Loans were raised by the airline as NCDs at 9.05-10.05% interest rate, will be prepaid as part of govt's sale of airline to Tatas

The board of directors of Air India is meeting on Monday to finalise a plan to prepay debt worth Rs 12,900 crore to the lenders. The loans were raised by the airline as non-convertible debentures and will be prepaid as part of the government's sale of the airline to the Tata group.

A banking source said the airline was paying very high interest of 9.05-10.05 per cent on the NCDs. As per the plan, the NCDs are expected to be prepaid by the Indian government through Air India Asset Holdings Pvt Ltd (AIAHL) before the Tatas takes over the airline