Air India on Thursday put up for re-auction properties worth Rs 350 crore across major cities after it failed to generate interest amongst buyers in the first instance when it had put them up in February.
Air India on Thursday put up for re-auction properties worth Rs 350 crore across major cities after it failed to generate interest amongst buyers in the first instance when it had put them up in February. There has been no change in the base price though. “There were some suggestions given by the oversight committee which have been included in the latest auction. But there has been no change in the reserve price,” an Air India executive told FE. Several real estate experts had blamed high reserve prices for a tepid response to the auction.
The national carrier had put around 40 properties for auction in February this year. The latest list of 41 apartments and land parcels, mostly in Mumbai, include 2,000 sq metre plot at Bandra’s Pali Hill area. The reserve price of this residential land with 14 apartments has remained unchanged at Rs 200 crore. Kolkata, Bengaluru, Pune and Ahmedabad are among other cities where Air India’s residential apartments are up for sale.
Minister of state for civil aviation Jayant Sinha told parliament in February that Air India sold assets worth Rs 445 crore since the turnaround plan was introduced in 2012. The airline had to monetise its assets and generate Rs 5,000 crore until 2021 as per the plan. The minister had blamed the land title deeds for failing to keep up pace with the target. Air India has been trying to sell its non-core assets to shore up its debt, standing at Rs 48,781 crore at the end of March 31, 2017.