A senior official from Air India told ANI that the money would be disbursed from next week via installments.
The national carrier has a debt burden of more than Rs 52,000 crore.
The previous UPA Government had extended a bailout package worth little over Rs 30,000 crore to the national carrier for a ten-year period starting from 2012.
The Air India group flies to 44 overseas and 75 domestic destinations. Flights operate to Copenhagen, Tokyo, Washington, Stockholm, Sydney, Hong Kong, Kabul, Colombo, Seoul, Singapore and London, among other foreign cities. (ANI)