NEW DELHI: Private sector companies may not get as much as a chance with Air India's 1.7-lakh sq ft office in central Delhi's Baba Kharak Singh Marg as the national carrier has decided to give preference to stateowned enterprises to lease it as part of its programme to monetize real estate assets.
The loss-making and debt laden airline had decided in February to monetise its properties spread over India and various parts of the world over the next three years to raise an estimated Rs 5,000 crore, kick starting the process with its city terminal office at Baba Kharak Singh Marg.
However, the airline doesn't want to sell it to private companies but lease it to government-owned enterprises after it received strong interest from the State Bank of IndiaBSE -0.06 % (SBI), Oil and Natural Gas Corp ( ONGCBSE 0.20 %) and Life Insurance Corporation ( LIC).
"Big PSUs have approached us for this property and we think if we give it to them, this property will remain in the government landbank and not go out of it. If we don't get encouraging rates from PSUs only then will we float a tender for private party," a senior Air India executive told ET.
Air India has engaged property consultant DTZ who will submit a valuation report to the airline board, from where the proposal will go to the ministry of civil aviation and then to the Cabinet.
The mode of selling properties would be e-auction.
New permission has been granted to sell vacant pieces of land in Coimbatore, Chennai, Kolkata and Sterling apartments in Mumbai. In addition to the real estate in India, flats and office spaces in foreign locations like Nairobi, Mauritius, Tokyo and Hong Kong, where the airline has small operations are also on the monetisation list.
Air India, which has as a total of 106 properties within the country and abroad, has a debt pile of Rs 43,000 crore and accumulated losses of over Rs 20,000 crore.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Air-India-to-give-preference-to-PSUs-while-leasing-its-real-estate-assets/articleshow/19588236.cms
The loss-making and debt laden airline had decided in February to monetise its properties spread over India and various parts of the world over the next three years to raise an estimated Rs 5,000 crore, kick starting the process with its city terminal office at Baba Kharak Singh Marg.
However, the airline doesn't want to sell it to private companies but lease it to government-owned enterprises after it received strong interest from the State Bank of IndiaBSE -0.06 % (SBI), Oil and Natural Gas Corp ( ONGCBSE 0.20 %) and Life Insurance Corporation ( LIC).
"Big PSUs have approached us for this property and we think if we give it to them, this property will remain in the government landbank and not go out of it. If we don't get encouraging rates from PSUs only then will we float a tender for private party," a senior Air India executive told ET.
Air India has engaged property consultant DTZ who will submit a valuation report to the airline board, from where the proposal will go to the ministry of civil aviation and then to the Cabinet.
The mode of selling properties would be e-auction.
New permission has been granted to sell vacant pieces of land in Coimbatore, Chennai, Kolkata and Sterling apartments in Mumbai. In addition to the real estate in India, flats and office spaces in foreign locations like Nairobi, Mauritius, Tokyo and Hong Kong, where the airline has small operations are also on the monetisation list.
Air India, which has as a total of 106 properties within the country and abroad, has a debt pile of Rs 43,000 crore and accumulated losses of over Rs 20,000 crore.
http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/Air-India-to-give-preference-to-PSUs-while-leasing-its-real-estate-assets/articleshow/19588236.cms
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