Process to monetise two AI’s New Delhi properties are underway

The civil aviation ministry has floated a Cabinet note on monetising two properties held by Air India (AI) in Delhi, a senior ministry official said. The two properties are in Vasant Vihar in south Delhi and Connaught Place in central Delhi, the official told Cogencis.

Air India signed an agreement with NBCC (India) in December 2014 to develop land parcels held by the former at various locations. As per the deal, NBCC would construct residential or commercial properties, depending on the land use, and sell the units. The pact had given three structures for the venture, including sale of land to NBCC and joint development of land.

AI has nearly 27.2 acres of land in Vasant Vihar and another 3.54 acres of land at Baba Kharak Singh Marg in Connaught Place, according to the report of Comptroller and Auditor General. "As these two properties are not entirely owned by Air India, they will be developed and will then be given on lease or rent for commercial purposes," the official said.

In April 2012, the Cabinet Committee on Economic Affairs had approved a plan to monetise Air India's assets to generate Rs 500 billion over a 10-year period, with annual revenues anticipated at Rs 50 billion. Subsequently, AI signed a master restructuring agreement with State Bank of India and other bankers, which listed an indicative set of 12 properties for monetisation, including Vasant Vihar and Baba Kharak Singh Marg. As on March 31, 2016, AI had a total debt burden of Rs 503.57 billion.