Lok Sabha Question No. 264 (STARRED), answered on 2019-07-11
Subject: Sale of Air India
Ministry: CIVIL AVIATION
Asked by: Sanjay Sadashivrao Mandlik, Bidyut Baran Mahato

*264.

STARRED QUESTION NO.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

:

2019) July

264

## SALE OF AIR INDIA

SHRI SANJAY SADASHIV RAO MANDLIK SHRI BIDYUT BARAN MAHATO

## Will the Minister of CIVIL AVIA TION

be pleased to state:-

- (a) whether the Government is preparing a fresh proposal for sale of Air India after failing to attract bidders for the national carrier during the last year and if so, the details thereof along with the reasons for considering the proposal for sale of Air India;
- (b) the time by which the final/fresh proposal is likely to be completed for sale;
- whether Air India is having huge tracts of unutilized land in various States/ cities of the country and if sO, the details thereof; State/city-wise;
- (d) whether Air India has proposed to sell its unutilized land and cut losses; and
- (e) if so, the details thereof and the amount of revenue likely to be generated therefrom with the other steps taken/ taken by the Government to save Air India from debt trap? along being

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

(a) to (e): A statement is laid on the table of the House

Statement in reply to part (a) to (e) of Lok Sabha Starred Q No.264 for 11.07.2019 regarding "Sale of Air India" tabled by Shri Sanjay Sadashiv Rao

- (a) & (b): Yes, Sir. The Government is committed to the strategic disinvestment of Air India: NITI Aayog in its recommendations, on Strategic Disinvestment of the Central Public Sector Enterprises in 12, 2017 had given the rationale for the disinvestment of Air India and has referred to the fragile finances of the company, among various other reasons Further, NITI Aayog in its report on Air India has stated that further financial support in a mature and competitive aviation market would not be the best use of scarce financial resources of the Government: May

The Cabinet Committee on Economic Affairs (CCEA); in its meeting held on 28.06.2017, had given an in-principle approval for considering Strategic disinvestment of Air India and its five subsidiaries.

After no bid was received for strategic disinvestment of Air India by the last date i.e 31.05.2018, the Air India Specific Alternative Mechanism (ATSAM) in its meeting held on 18.06.2018, had; inter-alia, decided the following:

- ii) the non-core land and building assets, that have already been identified should be monetized,
- i) in the meantime all near medium term efforts should be made to capture operational efficiency and to improve performance of Air India,
- iii) the assets could be shifted to Air India Assets Holding Limited s0 as to retire the debt of Air India and
- iv) the services of extant advisers should be used to carry out above mentioned activities

Government has also directed Air India Limited to financials of Air India and its subsidiaries finalized. Further, an AISAM with new members on its re-constitution will finalise the parameters for disinvestment of Air India: get

- (c): Air India possesses 30 un-utilised tracts of land; details of which are at Annexure.
- (d) & (e): The Cabinet Committee of Economic Affairs (CCEA) had approved Turn Around Plan (TAP) and Financial Restructure Plan (FRP) of Air India on 12th April 2012 which; inter-alia, includes the monetization of Real Estate Assets in Air India to the tune of Rs.5000 crore over a 10 years period with the annual target of Rs.500 crore from the financial year 2013 onward:

Air India has planned to monetize its unutilised/surplus immovable real estate assets Till date, Air India has realized an amount of Rs.534.65 crore through sale of its non-core assets in various cities in India and abroad. Air India has also realized a rental income of Rs.314 crore approx: Further; amount of revenue likely to be generated from monetisation of land/properties depends on the bid process and subject to No Objection Certificates (NOCs) from concerned authorities.

Further even as the Government is committed to the disinvestment of Air India,the Government has approved a Revival Plan of Air India with financial support which focusses on building a competitive and profitable airline Group. The financial support; inter-alia, includes a cash support of Rs. 3975 crore to Air India, transfer of debt amounting to Rs. 29464 crore from Air India Limited to Special Purpose Vehicle (SPV) i.e Air India Assets Holding Limited (ATAHL); providing Government guarantee of Rs. 7600 crore to Air India Limited and Rs. 1300 crore to SPV to meet the interest for Q3/Q4 of Financial Year 2018-19 on the debt transferred t0 the SPV. Also the entire debt on the SPV debt would be serviced by the Government from Financial Year 2019-20 for which Rs. 2600 crore has been provided:

The Revival Plan of Air India also focuses 0n the financial and operational efficiencies so that substantial increase in revenue or cost saving can be achieved\_ Also, as decided in the meeting taken by Finance Minister on 07.09.2018, operational and financial performance parameters and milestones were fixed by the Government and are regularly reviewed via review meetings held under the chairmanship of Secretary; Ministry of Civil Aviation:

## ANNEXURE

|     | Description/ Location                                                                                                                          | Area (inSqm:   | Status          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|----------------|-----------------|
|     | AI Plot of land at Baba Kharak Singh New Delhi Marg,                                                                                           | 14326*         |                 |
|     | Residential Plot at Gurgaon                                                                                                                    | 420            | Sold            |
| 3.  | Commercial Land at Rail Head Comples, RakhBahu, Residency Rd: Jammu                                                                            | 1518           |                 |
| 4.  | Residential land at Sector 3, Trikuta Nagar, Jammu                                                                                             | 1138           |                 |
| 5   | Land for Housing Colony (13 Flats) Vidyadhar Housing Colony, Khasra No. 16C & 17K SADA. Khajuraho                                              | 8094           |                 |
| 6_  | Residential land for Housing Colony 8, Haderpura Bye Pass West Distt: Badgam, Srinagar                                                         | 9861           |                 |
| 7   | Land for Booking Office, Near Bus Stand, Behind Telephone Exchange, Khajuraho                                                                  | 2090           |                 |
| 8.  | Commercial Land for Booking Office at Indira Nagar, Bengaluru                                                                                  |                | Sold            |
| 9   | Land for office premises at Udaygiri; Bengaluru                                                                                                | 25617          | Sold / Returned |
| 10. | Land for Housing  Colony at Gangamuthanahali; Bengaluru                                                                                        | 5827           | to KIADB        |
| 11. | Thiruvananthapuram                                                                                                                             | 2479           |                 |
| 12. | Residential Plot at Krishnaswamy Nagar, Pankaja Mills Road, Sowripalayam Ramanathapuram, Coimbatore; Tamilnadu Village,                        | 4024           | Sold            |
| 13. | Vacant Land at Plot No. 1 & 4 under No. 404 & 405 of Patta No 180, Mouza Dibrugarh Ward Gabherupathar; Sub District Dibrugarh Assam) Dag Town, | 3519           |                 |
| 14. | Commercial Vacant Land at B, No.6 of Dag No. 414, Tourist Lodge Compound, Kohima Road, Near Super Market; Dimapur                              | 1038           |                 |
| 15. | Vacant Residential Iand at No. 487_ Village Borjhar, Mouza Kakhin Rani under Palasbari Circle, Guwahati (Assam) Dag                            | 1405           |                 |
| 16. | Residential Plot for Staff Quarters at Khaikhali, Kolkata                                                                                      | 10684          |                 |

| 17_   | Commercial Land at Plot Nos 951,953 and 954, Wart No.1, Street No. 46, Revenue   Village Muharrampur, East Gandhi Maidan, Patna   |    566 |      |
|-------|-----------------------------------------------------------------------------------------------------------------------------------|--------|------|
| 18.   | Land for Staff Quarters at Sardar Nagar; Site No. 1 Vibhag-1, Hansol, Near Indira Bridge, Ahmedabad                               |  16000 |      |
| 19.   | Land & Building for Booking Office, Airlines House, Station Road, New SBI, Bhuj                                                   |    399 |      |
| 20.   | Plot 21, Ghanshyam Nagar, Bhuj, Kutch, Gujarat No.                                                                                |   2500 |      |
| 21.   | Commercial Land for Booking office at Jamnagar                                                                                    |   1000 |      |
| 22.   | 06 Residential Plots, Charkop, Kandivali, Mumbai                                                                                  |   5410 |      |
| 23.   | Residential Plot No: 24, Sector 27, CIDCO, Nerul, Navi Mumbai                                                                     | 100021 |      |
| 24.   | Residential Plot No: 2, Sector 27, CIDCO, Nerul, Navi Mumbai                                                                      |  69973 |      |
| 25.   | Land for Booking Office at Angels Chamber, Dheber Road, Rajkot                                                                    |   1076 |      |
| 26.   | Residential Plot No: 43, 78 & 79, Village Nana 44,                                                                                |   1331 |      |
| 27_   | Land for Booking Office, T.P Scheme No.9, Plot No.1, Vadodra                                                                      |   2000 |      |
| 28.   | (Part) Town Center, Bajipura, Aurangabad                                                                                          |    706 |      |
| 29.   | Bungalow Plot No. ASL-56 Survey No: 925 in Ashwin L at New Nashik                                                                 |    385 |      |
| 30.   | Residential cum Commercial Land at Laxmi House, Mount Road, Teynampet, Chennai                                                    |   5371 | Sold |