No objection over Air India’s building sale: Ministry of Civil Aviation

The Ministry of Civil Aviation (MoCA) has said that there is no opposition in selling off Air India’s iconic Nariman Point building by the employees of Air India. 

The employees of Air India and its union have been opposing the central government’s plan of dis-investing its stake from Air India into private hands due to rising debts.

Air India’s 23-storey building at Nariman Point in south Mumbai, which was the airline’s headquarters, is a prime property that is likely to fetch high valuations. The property also fetched — for the debt-ridden national carrier — close to Rs 300 crore in the form of lease rent between 2012 and 2018.

However, now, Air India plans to sell off the property for fetching finance for tackling its debt along with selling 20-odd properties of Air India all over the country. The amount earned from monetisation of the Air India assets are used to reduce the debt burden of Air India.

In March this year, the Civil Aviation Ministry had informed the Lok Sabha that the airline mopped up Rs 543.03 crore till then from monetisation of its assets in prime locations such as Mumbai and Chennai.

The ministry had also said the carrier collected Rs 291 crore as lease rental from the Air India building at Nariman Point, Mumbai between 2012-13 and January 2018.

In a written reply in the Lok Sabha, MoCA said, “Employees have not yet submitted any written opposition to the sale of Air India building. Monetisation of various assets has been initiated as per the Turn Around Plan (TAP) where the target was Rs 5,000 crore on monetisation over a period of 10 years from FY 2013 onward.”

The reply further stated, “Accordingly, the proposal for the sale of Air India building, Nariman Point to Government Department has been taken up with the Ministry of Shipping, Government of India.”

Meanwhile, 20 units have been sold through e-auction. The Ministry of External Affairs had purchased a vacant piece of land from Air India at Chennai, and also two Air India flats in Hong Kong. State Bank of India (SBI) purchased six Air India flats in Sterling Apartments in the city.

Air India’s debt burden is estimated to be more than Rs 50,000 crore.

DESPERATE MEASURES IN DESPERATE TIMES

• Now, Air India plans to sell off its 20-odd properties  across the country in order to fetch finance for tackling its Rs 50,000 crore debt
   
• The airline had mopped up Rs 543.03 crore from monetisation of its assets in prime locations such as Mumbai and Chennai 
   
• The MEA has bought a vacant piece of land in Chennai from the airline