India’s national airliner Air India’s efforts to
raise fund through asset monetization has finally going in the right direction
as it reached an agreement with National Buildings Construction Corporation to develop
its 1.3 acres of land in Chennai.
Air India and NBCC have signed a “non-exclusive” and
“non-binding” memorandum of understanding for joint development of land
parcels.
Air India hopes to raise about Rs 5,000 crore from
asset monetization but its plans have remained stuck in red tape and legal
wrangles, evoking a tepid response due to depressed market conditions.
Earlier, Air India wanted to sell its land in
Chennai as well as a four-acre plot on Baba Kharak Singh Marg in New Delhi but
it is no longer pursuing the sale option.
It had invited bids to sell the land in Chennai but
the quotations were below its expectations, forcing the airline to redraw its
plans. Also, the urban development ministry has opposed the airline’s plans to
sell or lease the Delhi land parcel.
Air India's asset monetization programme was approved
along with its turnaround plan by the Cabinet Committee of Economic Affairs in
April 2012 and was then set into motion planning process.
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