As part of the plan, the government will sell land, buildings and other realty assets of Air India, which is expected to make the airline competitive and fetch a better valuation during the disinvestment of the airline.
The government is expecting to get Rs 9,000 crore by selling off the land and real estate properties of debt-laden national carrier Air India, which will trim the Rs 29,000 crore debt held in the special purpose vehicle (SPV), news agency PTI reported.
Air India has a debt burden of Rs 55,000 crore. As part of the plan, the government will sell land, buildings and other realty assets of Air India, which is expected to make the airline competitive and fetch a better valuation during the disinvestment of the airline.
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Last week, a ministerial panel headed by Finance Minister Arun Jaitley approved the transfer of Rs 29,000 crore debt to an SPV — Air India Asset Holding Company.
“We are looking to raise about Rs 9,000 crore from sale of land and property assets of Air India. These include Airlines House in Bombay, realty property in Delhi’s Vasant Vihar and land in Baba Kharak Singh Marg, next to Connaught Place,” PTI quoted an official as saying.
Air India stake sale plan: What’s next?
The government last month announced plan B after it failed to attract any buyer for Air India in June this year. According to reports, the government has decided a strategic sale with the divestment of 100% of ground holding services. The ground holding services of Air India is called Air India Air Transport Services Ltd (AIATSL).
In June this year, the government faced the second attempt to sell debt-laden Air India. The government received no Expression of Interest (EoI) even from companies that were earlier understood to be interested in the deal. Earlier, during NDA-I regime, Air India disinvestment process was scrapped.