Air India unlikely to meet asset monetisation target of Rs1,200 cr

For the current fiscal, the airline plans to raise Rs 1,200 crore. Of the Rs 1,200 crore, Rs 800 crore will come from the sale of 4 acre land in New Delhi and the rest were to come from other properties.

The delay in asset monetisation will impact the airline’s plan to clear its debt, as the proceeds from asset sale were to go for debt repayment.

Air India has a debt of around Rs 30,000 crore and the financial restructuring plan of the airline aims to clear a large part of it over a period of nine years. Of the total debt, around Rs 25,000 crore are long-term debt and the rest are working capital debt.

The airline claims that it is on the final stages of negotiation on various properties and will complete them by this fiscal-end. “We have sold land parcels in Kolkata and Coimbatore for Rs 20 crore each and the rest are in final stages of negotiation,” he said.

He added that they have got Rs 20 crore from the out-of-court settlement with a tenant. “We are also looking at an out-of-court settlement with another tenant, which might get us at least Rs 50 crore.”

NOT ENOUGH
* Flats in Hong Kong and Mumbai to fetch Rs 100 crore each
* Land in Chennai to fetch Rs 118 crore. Land in Kolkata and Coimbatore to fetch Rs 20 crore each. Land in Gurgaon to fetch Rs 6 crore
* Rents from Air India building in Mumbai will add around Rs 12 crore this year. Around Rs 70 crore from out-of-court settlement of property disputes.