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GoAir gets Rs 800-crore credit line from banks: Report

The credit line will provide some relief to GoAir amid the COVID-19 pandemic.

February 28, 2021 / 11:37 AM IST
(File image: Reuters)

(File image: Reuters)

Budget carrier GoAir India has received a Rs 800-crore credit line from banks that will provide some relief to the airline amid the COVID-19 pandemic.

GoAir had applied for a debt restructuring under the Reserve Bank of India's one-time debt restructuring scheme after receiving the credit line, there will be no need for recasting loans, Business Standard reported.

"Banks have extended credit of Rs 700 crore-Rs 800 crore to the airline. This funding will be sufficient for the company for the next couple of years. This also means the airline will not need any debt restructuring," a banker told Business Standard.

Also read: Why a full revival of air travel will be delayed further

Moneycontrol could not independently verify the story.

GoAir declined to comment on the story when contacted by Business Standard. "As a policy, GoAir does not comment on market speculation," a GoAir spokesperson told the newspaper.

The loan extended to GoAir, promoted by the Wadia Group, was under the Emergency Credit Line Guarantee Scheme (ECLGS) 2.0, which was announced as a part of the third set of measures under the Atmanirbhar Bharat package.

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Tags: #GoAir
first published: Feb 28, 2021 11:37 am