Air India has agreed to partially pay off its Rs. 2,300 crore debt to state-owned Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp via daily payment system for the next 45 days, after which it hopes to repay in full.
Air India will pay a lump sum of Rs. 475 crore, or a little more than one-third of the Rs. 1,200 crore it received as equity infusion from the government this month. The airline also agreed to pay Rs. 13.5 crore daily for the next 45 days, less than the Rs. 17.5 crore sought by the oil firms.
The payments will be made from the government’s equity infusion.