IA to raise Rs 2400 cr rupee loan

New Delhi: The state-owned Indian Airlines is in talks with IDBI to raise Rs 2,400 crore in rupee loan for financing the purchase of ten mint-fresh planes from Airbus, starting 2008.
This will be the first time the airline is seeking rupee financing for aircraft purchase. The move, sources said, will help India reduce the transaction costs.
Indian, the source said, intends to secure rupee loan to finance the aircraft that are slated to be delivered after 2008.
IA had secured a loan of $540 million from the German national bank KFW to pay for the delivery of first 10 Airbus planes. The loan, covers those aircraft that It will receive till early 2008.
11/12/06 Byas Anand/Times of India

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