Air India?s operational performance might have been satisfactory but the airline?s failure to meet the target of raising revenues through stake has become a matter of concern for the civil aviation ministry.
The national carrier, which has to meet a target of raising Rs 5,000 crore through property sale in 10 years, has faltered in the first year itself by not being able to raise Rs 500 crore in 2012-13 through asset sale.
?Air India?s failure to meet its target to raise money through property sale is a concern for us. We expect them to raise at least Rs 1,000 crore in the current fiscal. It would be good, if they raise more than that,? said a senior ministry official.
The issue could be raised in the oversight committee on Air India, which is to meet on April 16, 2013.
The oversight committee was formed to monitor the performance of Air India after the government approved over Rs 30,000 crore equity infusion and has the aviation secretary and expenditure secretary as its member.
In the last fiscal, Air India tried to sell a four-acre plot and earn around Rs 800 crore. That failed as the airline did not have the title deed to the land. It has subsequently obtained the papers.
Air India plans to raise Rs 1,200 crore in 2013-14, out of which, Rs 800 crore is expected from the sale of the four-acre land and the rest from the sale of flats and land in Mumbai, Chennai and Coimbatore, and sale of flats in Hong Kong and Nairobi.