The airline's presentation to ministry shows most of its properties intended for monetisation need to sort out title issues or approvals from various authorities
A recent presentation made by state-owned Air India (AI) officials to the civil aviation ministry shows that its plans to monetise its assets across the country and globe is nowhere close to fruition.
Almost all the land and properties shown in the presentation, a copy of which is with the dna, are either stuck due to title issues or are awaiting approvals from various authorities.
The public sector utility (PSU) needs money to clear its total liabilities running into over Rs 60,000 crore. These include paying off short- and long-term debts raised to buy aircraft, settling dues of various vendors and supplies and others such expenses.
Starting with Kaikhali property in Kolkata, which has yet to get the West Bengal government nod, to its building in Nariman Point that would require AI to pay 0.5% of the value of the property for loan taken against it as fees to acquire no objection certificate (NOC), it would be a long way before the national flag carrier will be able to raise cash from these properties.
Meanwhile, it is awaiting responses from the National Building Construction Corporation (NBCC) for the redevelopment of its assets in Gurgoan and Kolkata. Simultaneously, its asset in Chennai is being valued by three parties before it is handed over to NBCC. Its second property in Tamil Nadu at Coimbatore also has yet to get clearance from the state government.
Two of its properties in Delhi at Baba Kharak Singh Marg and Gurudwara Rakabganj Road have to sort out issues relating to conditions for entering into memorandum of agreement (MoA) and NOC from Land and Development Office (L&DO). The plan for monetising its another property in the national capital at Vasant Vihar is also not very clear.
Interestingly, its land at OAP in Kalina and NIPTC at Santa Cruz in Mumbai belongs to Airports Authority of India (AAI), and now with Mumbai International Airport Ltd (MIAL), an airport consortium led by GVK Infra. It will, therefore, need to seek the approval of MIAL to go ahead on it. According to an industry insider the matter is being "pursued at a higher level".
AI has been able to move forward with monetisation of its huge asset in Nerul in Mumbai as it is waiting for a response from City and Industrial Development Corporation (Cidco).
Even as the airline is trying hard to resolve issues relating to its assets in the country, it has not made much headway with some of its overseas properties too.
The airline's Hong Kong property continues to be plagued with title issues while it is in discussion with the ministry of external affairs (MEA) for sale of assets in Nairobi and Mauritius.
An airline official, who did not want to be named said, AI should first do something about its aircraft before trying to monetise its land and properties.
"In terms of important assets of an airline, aircraft comes on top then it is staff and then property. They should do something about the aircraft, which are being currently underutilised by around 20-30% below the benchmark set in the turnaround plan (TAP)," he said.
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