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.
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.