Air India plans to raise Rs 80 crore through sale of properties

Mumbai: Government-run Air India plans to raise around Rs 80 crore through sale of its seven properties, including some land parcels, as a part of its asset monetisation plan.

The national carrier has mandated the state-run auctioneer MSTC to put these properties under the hammer.

"Air India proposes to sell its exclusive properties in the form of land parcels/built-up flats located at prime location in Mumbai, Bengaluru and Trivandrum through e-auction process by MSTC," according to an e-auction notice posted on the airline's website today.

"We are hopeful of raising Rs 80 crore from the e-auctioning of the seven properties, which include both land parcels and flats," a senior Air India official said.

As per the turnaround plan/financial restructuring plan approved by the Cabinet Committee on Economic Affairs (CCEA) back in 2012, Air India is required to monetise its assets and generate Rs 5,000 crore by way of sale, leasing or developing an asset as a joint venture.

Under the plan, the carrier is to get financial assistance to the tune of Rs 30,000 crore over a 10-year period.

Air India has been in possession of some properties which are lying vacant and unused for a long time. These include parcels of land as well as residential and commercial estate in India and abroad.

So far, the carrier has been able to sell four of its flats in Mumbai to SBI for Rs 90 crore.

Besides, it has also leased out almost the entire space at its previous headquarters at Nariman Point here to various government agencies.

The national carrier is also in the process of leasing out around 25,500 square feet space at its Kolkata office complex.