The airline would surpass its original target of Rs 1,000-1,200 crore set for this fiscal year
GN Bureau | September 17, 2013
State-owned national carrier Air India is set to surpass its revenue target from asset monetization programmes in the current financial year. The cabinet secretary Ajit Seth recently cleared the way for sale of a prime plot of land on Delhi’s Baba Kharak Singh Marg. With this, the airline is expecting to gain revenues of around Rs 1,500 crore from sale of assets as compared to the original target of Rs 1,000-1,200 crore set for this fiscal year, according to a news report published in Business Standard.
To avoid any controversy over its Asset Monetisation Programme, Air India has formed a three-member oversight committee to monitor the auction process. The committee constitutes retired Supreme Court Judge D N Dharmadhikari, former Chief Vigilance Commissioner Pratyush Sinha and former Comptroller and Auditor General V N Kaul.
The Ministry of urban development had in the draft land transfer deed barred Air India from selling or leasing the land on Baba Kharak Singh Marg. Despite the fact that the plot was included in the first phase of asset sale under the financial restructuring plan (FRP) approved by the cabinet. Seth recently resolved the dispute and cleared the sale.
Public Sector Undertakings (PSUs), Industrial Development Bank of India (IDBI), State Bank of India (SBI), Oil and Natural Gas Corporation (ONGC) and Power Finance Corporation (PFC) had earlier this year evinced interest in securing the land from the cash-strapped airline. The plot alone is expected to fetch the airline around Rs 1,000 crore.
Apart from the land in Delhi, the company has also put up for sale four apartments in Mumbai and a plot of land in Gurgaon. Also, the airline plans to auction the Air India Colony in Kolkata, some land in Coimbatore and in Chennai this year.
Monetization of asset is a part of the financial restructuring plan of Air India and was initially slated to be completed over a period of 10 years at the rate of Rs 500 per year. The airline’s board later decided to complete asset sale by March 2016 and utilize the proceeds to service its debt.
The airline has plans to earn revenue of around Rs 1200 crore in FY14, Rs 2000 crore in FY15 and Rs 1800 crore in FY16 through monetization of assets. Air India has debt of Rs 30,000 on its book. While Rs 25,000 crore is long-term debt, the remaining amount is tied in short-term debt and working capital debt.
For the rest of the world, it is not easy to understand China when it comes to politics or economics. Under pressure from the international community, it has accepted to open the country for a “comprehensive” probe into the origin of the deadly coronavirus. But it is not clear whether the Asian
Even as humanitarian support is pouring in to help distressed migrants amid Covid-19 pandemic and the lockdown, civil society organizations and NGOs are working for sanitation of community toilets which have become breeding source of virus infection. Every community toilet has 20 seats. Each
India, completing about two months of lockdown to protect against the spread of the Novel Coronavirus, has made good use of the time to improve health infrastructure, the government has said. Countering media reports “about some decisions of the government regarding the lockdown implem
As India begins to learn to live with Covid-19 and come out of nearly two-month long lockdown, regular train services are set to resume from June 1 in a graded manner, even as more ‘shramik’ special trains are planned. The railway ministry, in consultation with the health ministr
In the battle against Covid-19, India has managed to keep the mortality rate low at 0.2 deaths per lakh population, compared to some 4.1 deaths for the same population worldwide. Moreover, a total of 39,174 patients have been cured, registering a recovery rate of 38.73% which is improving continuously.
Sapio Umbrella, a unit of government advisory firm Sapio Analytics, has received support from Nobel Laureates Dr Michael Levitt and Colonel H R Naidu Gade in form of advisory engagement in strengthening its data driven decision support system for Covid-19. Sapio is providing data-driven sol