Air India seeks Rs 1,100 cr loan to modify planes for VVIPs

Agencies
December 10, 2017

New Delhi, Dec 10: Disinvestment-bound Air India is seeking loan worth over Rs 1,100 crore for modification of two Boeing aircraft scheduled to be acquired next month for ferrying VVIPs, according to an official document.

The two Boeing 777-300 ER aircraft are to be delivered in January 2018 and the cost for "modification in its (planes) interior configuration" is estimated to be USD 180 million. At current exchange rates, the amount will translate to over Rs 1,160 crore.

These planes will be used to ferry the President, Vice President and Prime Minister.

In a tender document, the national carrier said it would like to avail a bridge loan of up to USD 180 million to finance the cost of modification.

"Government of India has indicated that they would issue its guarantee for the financing cost of modification of the two B777-300 ER aircraft for a period of 12 months or less," the document issued last week said.

These planes will undergo re-configuration.

The proposed loan amount will be availed during the period from January to April 2018. The first instalment of USD 135 million would be taken next month, while the remaining amount will be borrowed in a quantum of USD 15 million each in February, March and April, respectively.

Last month, an Air India official had said after required modifications, the two planes will join the fleet used to carry the President, the Vice President and the Prime Minister.

According to the airline, no commitment fee would be paid to the lender for the USD 180 million loans. "Prepayment/ short closure of the loan should be allowed without any extra cost to Air India as the loan would be repaid as soon as the funds are made available by Government of India," it added.

"The Indian Income Tax Act imposes withholding tax on interest payments to lenders outside India. The rate of withholding tax on interest payments will be considered in the financial evaluation of the offers to determine the all-in cost of your offer," the document said.

Last month, Air India had sought a loan to the tune of USD 535 million to finance the acquisition of three Boeing planes, including the two aircraft to be used for ferrying VVIPs. At that time, the amount was around Rs 3,460 crore.

Air India has a debt burden of more than Rs 50,000 crore and these loans would further increase the debt level.

In 2006, Air India placed orders with Boeing for 68 aircraft 27 Dreamliners, 15 B777-300 ERs, eight B777-200 LRs and 18 B737-800s. Of these, the state-run carrier has already taken the delivery of 65 planes. At present, the flagship airline has a fleet of 115 aircraft.

The government is in the process of finalising the modalities for the strategic disinvestment of debt-laden Air India as part of efforts to revive the carrier.

Comments

Wellwisher
 - 
Monday, 11 Dec 2017

What is the meaning of VVIP.  Passengers who lost their life during air india express crash landung due to arrogant pilots error not respected or they compensated per Montreal law  no they want to arrange special arrangements for very very illegal persons. Over all in India there is no value for common man. All benifits and facility''s  only for giant Wales and politicians. For common man only one facility by the present govt to fight with name of caste. We the people doing the same fighting with fellow INDIAN.

 

Jai Hind!

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 12,2020

New Delhi, Mar 12: The coronavirus pandemic could deal a crippling blow to the Indian travel and tourism industry, specially with the government suspending all visas, with the economic impact being assessed to run into thousands of crores of rupees. According to industry chamber CII, this is the one of the worst crises ever to hit the Indian tourism industry impacting all its geographical segments - inbound, outbound and domestic, almost all tourism verticals - leisure , adventure, heritage, MICE, cruise, corporate and niche segments.

The whole tourism value chain across hotels, travel agents, tour operations, destinations, restaurants, family entertainment venues and air, land and sea transportation have been hit.

In an impact assessment of the coronavirus pandemic, CII Tourism Committee said inbound foreign tourism of over USD 28 billion in value terms accounts for an average 60-65 per cent between October to March.

"As the news of the virus started picking up from November, the percentage of cancellations started going up in this segment exponentially and is reaching a peak of almost 80 per cent now in March in many Indian locations. The value at risk from this segment will be in multiples of tens of thousands of crores," the CII assessment report said.

With India cancelling all visas, the chamber said the impact "will be worse".

It further said,"The forward bookings for the inbound season of October 2020-March 2021 which should have started picking are all muted. These are showing highly discouraging signs with cancellations of important global travel marts which are marketplaces for contracting for the next season."

It further said there are reports of large scale forward cancellations from NRI segment from developed markets, which account for over 60 per cent during April to September inbound visits.

"Unless the progression of the virus stops, almost the entire value for the remainder of 2020 season is at risk," the report added.

ANAROCK Property Consultants Chairman Anuj Puri said India's hospitality sector will definitely be impacted by the announcement of a global pandemic, and the mounting numbers of confirmed coronavirus cases in the country.

"The cancellation of visas for foreigners as well as the strong advice issued to Indians to refrain from unnecessary travel will have a marked effect. This is the most unsettling healthcare crisis in recent times and hotel bookings will go south," he added.

On Indians being advised to refrain from unnecessary travel, as per the CII report almost 28 million plus Indians are estimated to have travelled outside in 2019 and there were almost 1.8 billion domestic tourist footfalls.

The holiday season of Indians -- those travelling within the country and outside -- is heavy in April-July, October and December.

"The December holiday season of 2019 took an estimated hit of almost 40-50 per cent, the holiday season of April to July 2020 is likely to take a humongous hit which could be as high as 80-100 per cent, unless there is positive news of the progression of virus decreasing," the CII assessment report said.

There are advanced cancellations and highly reduced forward booking pipelines for the holiday season. Only corporates are flying and that too only on highly essential same day travel. Most of the MNCs are advising work from home, stifling travel, it added.

On suspension of visas, MakeMyTrip Group CEO Rajesh Magow told ,"The period between February till the end of March is typically a lean period because of exam season but we are seeing a demand slowdown for the upcoming summer holiday season especially for international travel. The situation remains dynamic making it hard to quantify the actual impact on our business and industry at large."

He further said,"The decision by the government will have an impact on inbound and outbound international travel. So far there are no restrictions or advisories issued for domestic travel."

VFS Global Regional Group COO - South Asia, Middle East and North Africa, Americas Vinay Malhotra said,"While it is too early to comment on the impact of coronavirus on visa application trends, so far, our visa application processes in India continue on schedule as per the mandates of our client governments."

He also said the company is exploring steps to assuage concerns of people about visiting busy public areas due to the nature of the virus by considering discounted rates on courier return services for visa customers who want to avoid returning to the visa centres to pick up their passports.

Besides, he said,"We are also contemplating lower fees for our Visa at your doorstep service, for those customers who are requesting an alternative to visiting the centres to submit visa applications."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 1,2020

New Delhi, Jul 1: 18,653 COVID-19 cases have been reported in India in the last 24 hours, taking the country's tally of coronavirus cases to 5,85,493, informed the Union Health and Family Welfare Ministry on Wednesday.

As per the Ministry, there are presently 2,20,114 active cases in the country. The number of patients cured/discharged and migrated stands at 3,47,979.

507 deaths due to COVID-19 were reported in the last 24 hours taking the total deaths due to the virus to 17,400.

According to the ministry, Maharashtra is the worst-affected state by the virus with 1,74,761 cases including 7,855 fatalities.

Tamil Nadu is the second worst-hit state with 90,167 cases including 1,201 deaths. Meanwhile, Delhi has a total of 87,360 cases.

The Indian Council of Medical Research said that a total number of 86,26,585 tested up to June 30 of which 2,17,931 samples were tested on Tuesday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
April 23,2020

New Delhi, Apr 23: Delhi Police has booked Jamia students Meeran Haider and Safoora Zargar under the Unlawful Activities (Prevention) Act (UAPA) in a case related to communal violence in northeast Delhi over the Citizenship (Amendment) Act, said a lawyer.

Haider and Zargar, arrested for allegedly hatching a conspiracy to incite the communal riots in February, are in judicial custody. While Zargar is the media coordinator of Jamia Coordination Committee, Haider is a member of the committee.

The police has also booked Jawaharlal Nehru University student leader Umar Khalid under the UAPA in the case, said advocate Akram Khan who is representing Haider in the case.

Haider (35) is a PhD student and the president of RJD youth wing's Delhi unit, while Zargar is an MPhil student of Jamia Millia Islamia (JMI) university.

In the FIR, the police has claimed that the communal violence was a "premeditated conspiracy" which was allegedly hatched by Khalid and two others.

The students have also been booked for the offences of sedition, murder, attempt to murder, promoting enmity between different groups on grounds of religion and rioting.

Khalid had allegedly given provocative speeches at two different places and appealed to the citizens to come out on streets and block the roads during the visit of US President Donald Trump to spread propaganda at international level about how minorities in India are being , the FIR alleged.

In this conspiracy, firearms, petrol bombs, acid bottles and stones were collected at numerous homes, the FIR claimed.

Co-accused Danish was given the responsibility to gather people from two different places to take part in the riots, the police alleged.

Women and children were made to block the roads under the Jafrabad metro station on February 23 to create tension amidst the neighbourhood people, it said.

Over 20 film personalities, including Anurag Kashyap, Vishal Bhardwaj, Mahesh Bhatt and Ratna Pathak Shah, on Sunday had released a statement raising their voice against the arrest of the students and activists by Delhi Police for protesting against the Citizenship (Amendment) Act and demanded their release.

Following this, the police had said investigations into the JMI violence and northeast Delhi riot cases were done impartially, and arrests were made after analysis of forensic evidence.

In December last year, the police had allegedly entered the JMI campus after protests over the CAA, being held a few metres away from the varsity, turned violent.

Rajya Sabha MP and RJD leader Manoj Jha had tweeted, "Delhi Police called him for investigation and then received orders from above and arrested Meeran Haider, who has been helping people during the time of coronavirus outbreak."

The Jamia Coordination Committee (JCC), a group comprising students and alumni from the varsity, had condemned the arrest and demanded his immediate release.

"The country is facing a massive health crisis, however, the state machinery is busy harassing and framing student activists in false cases to suppress voices of dissent," they said.

The JCC said Haider was diligently working to provide ration to the needy during the lockdown. Communal clashes had broken out in northeast Delhi on February 24 after violence between citizenship law supporters and protesters spiralled out of control leaving at least 53 people dead and around 200 injured.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.