Air India sold 115 properties at Rs 738 cr since 2015 to offset debt
AVIATION & AIRPORTS

Air India sold 115 properties at Rs 738 cr since 2015 to offset debt

On Thursday, the Ministry of State for Civil Aviation, V K Singh, told the media that Air India had sold 115 of its real estate properties of Rs 738 crore from 2015 to offset its debt.

As per the decision of Air India Specific Alternative Mechanism (AISAM) in 2018, the disinvestment-bound Air India has been monetising its immovable assets to offset its debt. In March 2019, the company had a debt of about Rs 60,000 crore.

On Thursday, Singh replied to Lok Sabha that Air India had identified 111 property parcels for monetisation, of which 106 property parcels are in India, and the remaining five are overseas properties.

He also said that the 111 parcels of properties have 211 units that are under monetisation.

On 8 July, the government held the first auction of Air India properties to sell the national carrier's properties such as apartments, commercial space in major cities and raised about Rs 270 crore.

On 18 July, Air India announced the e-auction of properties, including residential and commercial plots across major cities, as a part of the monetisation plan, amid the carrier's disinvestment process.

According to an official, the government has also reduced Air India's offer price by about 10% in its recent auction for Indian properties.

Until now, Air India has received Rs 738 crore from selling 115 units from 2015 to 12 July 2021. Air India even realises about Rs 100 crore annually from lease rental income, Singh said.

Currently, the centre is in the process of selling Air India. Financial bids are also to be received from qualified, interested bidders by 15 September 2021.

Image Source


Also read: Air India property auction begins; company targets to raise Rs 270 cr

On Thursday, the Ministry of State for Civil Aviation, V K Singh, told the media that Air India had sold 115 of its real estate properties of Rs 738 crore from 2015 to offset its debt. As per the decision of Air India Specific Alternative Mechanism (AISAM) in 2018, the disinvestment-bound Air India has been monetising its immovable assets to offset its debt. In March 2019, the company had a debt of about Rs 60,000 crore. On Thursday, Singh replied to Lok Sabha that Air India had identified 111 property parcels for monetisation, of which 106 property parcels are in India, and the remaining five are overseas properties. He also said that the 111 parcels of properties have 211 units that are under monetisation. On 8 July, the government held the first auction of Air India properties to sell the national carrier's properties such as apartments, commercial space in major cities and raised about Rs 270 crore. On 18 July, Air India announced the e-auction of properties, including residential and commercial plots across major cities, as a part of the monetisation plan, amid the carrier's disinvestment process. According to an official, the government has also reduced Air India's offer price by about 10% in its recent auction for Indian properties. Until now, Air India has received Rs 738 crore from selling 115 units from 2015 to 12 July 2021. Air India even realises about Rs 100 crore annually from lease rental income, Singh said. Currently, the centre is in the process of selling Air India. Financial bids are also to be received from qualified, interested bidders by 15 September 2021. Image Source Also read: Air India property auction begins; company targets to raise Rs 270 cr

Next Story
Infrastructure Urban

Renesas, MeitY Partner to Support Startups & Academic Institutions

Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, today announced its partnership with the Ministry of Electronics & Information Technology (MeitY), Government of India, to support local startups and academic institutions in the field of VLSI and embedded semiconductor systems. Renesas also celebrated the expansion of its offices in Bengaluru and Noida to accommodate its growing R&D teams, with the inauguration ceremonies held today. This strategic move underscores Renesas’ commitment to innovation and excellence in India and aims to drive conti..

Next Story
Infrastructure Urban

India, EU Unite for Research on Marine Plastic & Waste-to-Hydrogen

India and the European Union (EU) have launched two major research and innovation initiatives under the India-EU Trade and Technology Council (TTC). The TTC was established in 2022, by Indian Prime Minister Narendra Modi and European Commission President, Ursula von der Leyen to strengthen the bilateral partnership on trade and technology. With a joint investment of Rs 3.91 billion, the initiatives focus on two coordinated calls in the areas of Marine Plastic Litter (MPL) and Waste to Green Hydrogen (W2GH), co-funded by Horizon Europe—the EU’s research and innovation framework programme—..

Next Story
Infrastructure Urban

Dr Ajay Kumar Takes Over as UPSC Chairman

Dr Ajay Kumar, Former Secretary, Ministry of Defence took the Oath of Office and Secrecy as Chairman, Union Public Service Commission today. The Oath was administered by Lt Gen Raj Shukla (Retd.), the senior most Member of the Commission.Having pursued a B Tech. in Electrical Engineering from the Indian Institute of Technology, Kanpur, Dr Ajay Kumar has done his MS in Applied Economics from the University of Minnesota, USA and PhD in Business Administration from Carlson School of Management, University of Minnesota, USA. He was also conferred an Hon. Doctor of Philosophy by Amity University in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?