Air India to raise Rs 500 crore by selling real estate assets

New Delhi, Mar 5: National carrier Air India will sell some of its prime real estate across the country to raise Rs 500 crore, Mint reported quoting unnamed officials.
The airline might sell properties like its 4-acre piece of land at Delhi’s Baba Kharak Singh Marg, a residential colony in Vasant Vihar, some land in Chennai and some plots in Mumbai’s Pali Hill region with 14 houses.
“While some of the properties will be sold by Air India, the central government will sell other properties that were leased by the airline (from the government),” the officials said.
They added that the government is in the process of identifying various properties bearing Air India’s name that were earlier leased from the government on a long-term basis.
Minister of state for civil aviation Jayant Sinha in February told Rajya Sabha that Air India had raised Rs 445 crores by selling land since the government in 2012 set a target to raise Rs 5,000 crore over 10 years by selling real estate.
Sinha said that Air India could not meet the target set by the government because of issues pertaining to title deeds.
Most of these issues have now been sorted in light of the airline’s sale in 2018-19 after many private entities showed interest in its real estate assets.
“The airline will not need cabinet approval to sell its land to public sector companies, while a cabinet nod would be required if properties were to be sold to private companies,” said one of the officials mentioned above.