Burdened by debt, Air India to sell assets worth nearly Rs 250 cr

New Delhi: Debt-laden Air India plans to sell properties and land parcels worth nearly Rs 250 crore spread across three cities. To monetise these assets of Air India, the civil aviation ministry would soon be moving a cabinet note.[caption id=“attachment_2323806” align=“alignleft” width=“380”]  Burdened by debt. PTI[/caption] A senior ministry official today said the assets to be sold comprise four flats in Mumbai besides land parcels in Chennai and Coimbatore. While the flats in Mumbai are estimated to be worth more than Rs 90 crore, the land parcel in Chennai is valued at over Rs 120 crore. The sale of Coimbatore land parcel is expected to fetch anywhere between Rs 20-30 crore, the official said. According to the official, the cabinet note is being finalised and would be ready soon. Air India, whose debt burden is about Rs 40,000 crore, is surviving on a bailout package approved in 2012. The erstwhile UPA dispensation had approved Air India’s turnaround plan, with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders. Meanwhile, the ministry is making efforts to secure about Rs 2,400 crore for the national carrier through supplementary budgetary allocations and recovery of dues worth Rs 600 crore related to use of its aircraft for VVIP travel. Out of the total, around Rs 1,800 crore is being sought to meet the funding shortfall faced by the cash-starved national carrier. Efforts are being made to secure funds for Air India as the supplementary demands of ministries would be considered during the upcoming Monsoon Session of Parliament beginning 21 July. The ministry is pitching for additional funds for Air India, which was allocated Rs 2,500 crore in the Union Budget 2015-16. The amount was well short of nearly Rs 4,300 crore sought by the ministry for the national carrier. The ministry wants to make up for the shortfall of Rs 1,800 crore through supplementary demand for grants. PTI