Air India monetises property worth Rs.90 crore

The government on Monday reported that the national passenger carrier Air India has so far managed to earn Rs.90.24 crore by monetising its unused properties in the current fiscal.

Minister of State for Civil Aviation Mahesh Sharma informed the Lok Sabha during the question hour that Air India had during 2014-15 earned Rs.35.97 crore by monatising some of its properties which were lying vacant.

"Monetising such properties by way of sale/rent or to develop as a joint venture, to raise non operating revenue, would help the company to retire its huge debts," Sharma said.

According to Sharma, the government has received proposals for monetisation of Air India properties such as commercial and residential plots in Coimbatore, Chennai and Mumbai.

Sharma pointed-out that the proposals for monetisation of Air India properties is awaiting cabinet's approval.

"Air India has approached income and service tax departments, State Bank of India for leasing space in it's office building at Nariman Point, Mumbai," he said.

The national passenger carrier has an accumulated debt of around Rs.40,000 crore.

The monitisation of assets is a part of a turnaround and a financial restructuring plan worth Rs.30,000 which was passed in April, 2012.

Under the plan-- the company is required to monetise its assets to generate Rs.5,000 crore over a period of 10 years to repay part of its huge debt.

The plan also envisions the airline to get Rs.7,400 crore by issue of non-convertible debentures (NCDs) to banks, LIC (Life Insurance Corporation of India) and employees provident fund organisation (EPFO).