AI, Indian’s land assets revalued at Rs 6,000 cr

New Delhi: Ahead of the proposed IPO in the coming fiscal, the newly-created National Aviation Company of India Ltd (NACIL), which is the merged entity of Air India and Indian, is likely to get its balance sheet stronger by more than Rs 6,000 crore.
This would accrue due to the revaluation of land and buildings owned by the aviation company in India and abroad as these assets have a very nominal book value at present, official sources told Business Line.
With revaluation, land and buildings of the original Air India within the country have been estimated to be valued at around Rs 3,062 crore; the airline headquarters at Nariman Point in Mumbai alone being estimated at more than Rs 1,000 crore, officials said.
The valuation of fixed assets that Air India owns abroad is not being done afresh as this was completed earlier, officials added.
The revaluation of the original Indian Airlines’ land and buildings at the 40-50 cities in India and abroad is currently on, and is estimated to be in the same range as that of Air India. The process is expected to be completed by March 31 next year so that the increased valuation is reflected in the books for 2008-09.
28/12/07 Ashwini Phadnis/Business Line

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Categories: Air India - International Dec 2007, Air India Domestic Dec 2007, NACIL Dec 2007