We will not be able to achieve the target we had set for this fiscal primarily because we did not get the agreement from the urban development ministry to proceed on the land sale. We were expecting a bulk of around Rs 800 crore to come from the sale of that land, said a senior AI official.
For the current fiscal, the airline plans to raise Rs 1,200 crore. Of the Rs 1,200 crore, Rs 800 crore will come from the sale of 4 acre land in New Delhi and the rest were to come from other properties.
The delay in asset monetisation will impact the airlines plan to clear its debt, as the proceeds from asset sale were to go for debt repayment.
Air India has a debt of around Rs 30,000 crore and the financial restructuring plan of the airline aims to clear a large part of it over a period of nine years. Of the total debt, around Rs 25,000 crore are long-term debt and the rest are working capital debt.
The airline claims that it is on the final stages of negotiation on various properties and will complete them by this fiscal-end. We have sold land parcels in Kolkata and Coimbatore for Rs 20 crore each and the rest are in final stages of negotiation, he said.
He added that they have got Rs 20 crore from the out-of-court settlement with a tenant. We are also looking at an out-of-court settlement with another tenant, which might get us at least Rs 50 crore.