SOME PSUs Are Reportedly Interested In Buying Air-India’s Multi-crore Building In Mumbai

WITH India’s national carrier’s mounting losses, some Public Sectors including Life Insurance Corporation of India, Jawaharlal Nehru Port Trust and General Insurance Corporation of India headquartered in Mumbai have evinced interest in buying the 23-storeyed Air India Building in Mumbai’s Nariman Point business hub .Both LICI and GIC’s headquarters are located near the Air India building. Confirming this official said no decision had been taken for selling the Air India building. This is apart from JNPT,” the official said.The national carrier had collected Rs 291 crore as lease rentals from the property between FY13 and January 2018.The government had in June started discussions for sale of the iconic tower to Jawahar Lal Nehru Port Trust (JNPT) as part of Air India’s asset monetisation plans. The Government also intends to partially privatise Air India. Air-India is burdened with over Rs 55,000 crore debt. But no company is willing to share its liabilities including huge workforce. Air India management has been trying to monetize non-core real estate properties.”We expect the valuation of the property to go up after many companies showing interest in it. We will assess valuation and accordingly decide when to go for bids,” the official was quoted as saying by the Deccan Chronicle. As per Air India’s audited accounts, the airline’s total losses stood at Rs 47,145.62 crore in 2016-17.The government May said that Air India has mopped up Rs 543.03 crore from monetisation of its assets in prime locations of Mumbai and Chennai. As nation is awaiting Lok Sabha elections in April-May, no decision on the national carrier is expected.  (With inputs from The Deccan Chronicle)

 

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