MUMBAI: Air India has announced it is seeking an urgent multi-million-dollar loan to maintain day-to-day operations, highlighting the wretched financial predicament of the country’s debt-stricken national carrier.
In a statement posted on its website this week the airline said it was looking for a short-term loan of 10 billion rupees ($148 million) “to meet urgent working capital requirements.”
Air India has failed to pay staff their salaries on time for the past three months, according to multiple news reports.
The plea for funds, made on Tuesday but only picked up by media late Thursday, came just days after the government said it had not received any bids in an auction for a majority stake in the beleaguered airline.
The government announced in March that it planned to sell up to 76 percent of Air India but a May 31 deadline passed without any suitors coming forward.
Airlines and other investors were put off by some of the sale terms, forcing the government to go back to the drawing board.
India’s Tata Group, Singapore Airlines (SIA) and IndiGo were all linked to a takeover but subsequently ruled themselves out.
IndiGo, India’s biggest airline, wanted Air India’s international operations but the government refused to carve up the carrier.
Air India, founded in 1932, was once the country’s monopoly airline, known affectionately as the “Maharaja of the skies.”
But it has been hemorrhaging money for years and it has lost market share to low-cost rivals in one of the world’s fastest-growing airline markets.
Successive governments had spent billions of dollars to keep it flying before Prime Minister Narendra Modi’s cabinet last year gave the go-ahead for a sell-off.
Air India is about $8 billion in the red and reported losses of almost 58 billion rupees for the financial year ending March 2017.
Embattled Air India seeks ‘urgent’ loan
Embattled Air India seeks ‘urgent’ loan
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
