Air India to sell holiday home, prime land to raise Rs 500 crore | Latest News India - Hindustan Times
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Air India to sell holiday home, prime land to raise Rs 500 crore

New Delhi | By
Apr 03, 2019 11:45 PM IST

According to the second Air India official, the money generated from these sales will go to special purpose vehicle (SPV) called Air India Asset Holding Limited (AIATSL) that was created by the civil aviation ministry in 2003.

A holiday home in Lonavala, flats in Delhi’s Asiad Village, prime land in Mumbai and Thiruvananthapuram are among 23 properties spread across 14 cities that national carrier Air India (AI) wants to sell to generate Rs 500 crore, two AI officials familiar with the matter said.

Air India to sell more assets to raise Rs 500 croreSantosh Kumar/HT Photo
Air India to sell more assets to raise Rs 500 croreSantosh Kumar/HT Photo

The loss-making airline has already issued a notice for an auction of these assets.

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Last year, Air India had put up for sale its apartments in Bandra, Mahim, Khar, Colaba, Cuffe Parade, and Malad areas of Mumbai; in Indiranagar of Bengaluru; Navrangpura and Memnagar localities in Ahmedabad, as well as properties and land parcels in Kolkata, Pune, Bhuj, Goa, Gwalior, Thiruvananthapuram and Nashik. So far, the airline has generated about ~400 crore from the sale of these assets.

“There are many properties which we will transfer to the government before the disinvestment process begins but the apartments and land parcels owned by Air India are being sold in a phased manner. We have tied up with MSTC Ltd, which specialises in conducting e-auctions, to divest the real estate assets. In Bengaluru and Chennai we are selling both land parcels and flats. In Delhi, five flats in Asian Games Village Complex will be sold,” said one of the officials.

In December, the airline invited bids for its iconic 23-storey Nariman Point building in Mumbai.

According to the second Air India official, the money generated from these sales will go to special purpose vehicle (SPV) called Air India Asset Holding Limited (AIATSL) that was created by the civil aviation ministry in 2003.

The government has already decided to transfer Rs 29,000 crore of the total Rs 55,000 crore debt of Air India to this SPV, which is also tasked to raise money through land deals and other measures.

Once the debt of Air India is transferred, its annual interest liabilities will be around ~1,700 crore per annum against Rs 4,400 crore currently.

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  • ABOUT THE AUTHOR
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    Faizan Haidar writes on the Delhi government, city politics, transport, aviation, and social welfare. A journalist for a decade, he also tracks issues such as trafficking and labour exploitation in Delhi and other states.

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