Air India, a government aviation company struggling with money shortages, is in the discussion of Advance Round with State Bank of India (SBI) to at least sell its two residential properties. It can get around 50 crores from the sale of properties. Aviation companies and banking related sources gave this information.
It is worth mentioning that under the debt of fifty thousand crores, Air India recently demanded loans of Rs 1,500 crore for working capital requirements.
Sources said that the ongoing discussion between Air India and SBI in respect of the sale of two residential properties in South Mumbai is in the advanced stage. A source familiar with the airline said that the sale is expected to fetch around 46 crores rupees. The final outline of the deal is being prepared.
After trying to settle the assets, Air India has so far managed to sell its four flats in Mumbai to SBI for Rs 90 crore. These properties are located on the upmarket Pedar Road in South Mumbai.
In addition, the airline has rented almost the entire location of its old headquarters located at Nariman Point to government agencies.
As per the financial restructuring plan approved by the Cabinet Committee on Economic Affairs (CCEA) back in 2012, Air India is required to monetise its assets and generate Rs 5,000 crore by way of sale, leasing or developing an asset as a joint venture. Under the plan, the carrier is to get financial assistance to the tune of Rs 30,000 crore over a 10-year period.