Cash-strapped Air India puts its Nagpur booking office for sale

Nagpur: The cash-strapped Air India has put its booking office in Nagpur for sale as the national air carrier has announced the sale of its properties located across India.

Apart from booking office in Nagpur’s Civil Lines area, Air India has listed booking offices and staff quarters in Town Centre, Aurangabad, six units of CIDCO 2 BHK flats in Swami Vivekanand Nagar, Nashik, a residential plot with 14 flats in Pali Hill, Bandra, Mumbai; and a 3BHK and two 2BHK flats in Gazdar Scheme, Santacruz, Mumbai in Maharashtra.

The e-auction comes as a precursor to the disinvestment of the national air carrier. The divestment process is expected to be complete this year. As per an advertisement, the current e-auction bid’s starts on July 8, 2021, and closes on July 9, 2021. The e-auction notice is available on its website.

The five units at the Asian Games Village Complex in Delhi are also up for sale. The list also includes a residential plot in Gangamuthanhalli Village, Devanahalli District in Bengaluru and four units of residential flats in Uday Shankar Sarani, Golf Green, Kolkata.

In Gujarat, a residential plot (231 sq. m. approx.) and an Airlines House in Bhuj are on offer. A flat in Hoisala, Diana Complex, Kadri, Mangalore; a residential plot at NCC Nagar, Peroorkkada, Kadappanakunnu Village, Thiruvananthapuram also feature on the list.

The disinvestment of cash-strapped Air India is likely to happen by the end of this year, Union Civil Aviation Minister Hardeep Singh Puri said earlier this month. “Air India is still in the debt of Rs 60,000 crore and it’s liable to be sold,” the minister had said in late March.

The government is hoping to fetch approximately Rs 15,000 crore from the sale of national carrier Air India, it’s subsidiary Air India Express and AISATS – a 50:50 joint venture partnership between Air India and Singapore Airport Terminal Services (SATS) Limited.

The Tata Group and SpiceJet CEO Ajay Singh are the final two bidders for Air India. Both submitted Expressions of Interest (EoI) to the government in December 2020 and are expected to submit financial bids.

The government’s budgetary proposal is to raise Rs. 1.75 lakh crore from disinvestments and strategic sales in 2021-22. The disinvestment plan includes the sale of assets such as BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans and Neelachal Ispat Nigam amongst others.