New Delhi: Air India has decided to advance its asset-monetisation plan to raise Rs 5,000 crore over three years instead of 10 years, as the airline is more sure of the property prices it is getting now as opposed to distant future.
The board of Air India took the decision on Thursday, reversing an earlier government resolution of May 2012 to raise Rs 5,000 crore through asset monetisation over 10 years.
"The board has advanced the timelines to retire the airline's debt as soon as possible, for which it will create an escrow account. In fact the roadmap to raise around Rs 1200 crore by March 2014 is already prepared," a senior Air India executive told ET.
The activity is going to commence with selling off the city terminal office in Delhi spread across 1.7 lakh sq ft at Baba Kharak Singh Marg, which is expected to fetch around Rs 700 crore. New permission has been granted to sell vacant pieces of land in Coimbatore, Chennai and Kolkata, which would fetch another Rs 100-150 crore.
15/02/13 Anindya Upadhyay/Economic Times
