Lok Sabha Question No. 3192 (UNSTARRED), answered on 2015-12-17
Subject: Unused Properties of Air India
Ministry: CIVIL AVIATION
Asked by: SANJAY SHAMRAO DHOTRE, UDIT RAJ, BHARTRUHARI MAHTAB

3192.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 3192 (To be answered on the 17 th  December 2015)

## UNUSED PROPERTIES OF AIR INDIA

SHRI SANJAY DHOTRE

DR. UDIT RAJ

SHRI BHARTRUHARI MAHTAB

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the details of the properties of Air India lying vacant and unused for a long time across the country, as on date, State/UT-wise and the volume of
- all fixed assets of Air India as on date;
- (b)  the  efforts  taken/being  taken  by  the  Air  India  for  commercial utilisation  of  the  said  properties  along  with  the  revenue  generated therefrom during each of the last three years and the current year, year-
- wise;
- (c) whether the Air India has utilized such revenue in reducing its debts during the said period;
- (d) if so, the details thereof and if not, the reasons therefor along with the total debt position of the Air India as on date; and
- (e) the other steps taken/being taken by the Government to make the Air India debt free?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Dr Mahesh Sharma)

- (a):  Following freehold properties of Air India are lying vacant as on date:-
1. Land for Booking office,  Chennai, Tamil Nadu

2. Land for Booking office,  Coimbatore, Tamil Nadu 3. Land for Booking office,  Bangalore,Karnataka 4. Land for office premises, Bangalore, Karnataka 5. Land for Housing colony, Bangalore,  Karnataka 6. Land for Housing colony Trivandrum,  Kerala 7. Land for Staff Quarters Trivandrum, Kerala 8. Land for Staff Quarters, Ahemadabad, Gujarat 9. Land for Booking Office, Jamnagar,  Gujarat 10.Land for Booking Office, Rajkot,  Gujarat

- 11.Residential land,  Gurgoan,   Haryana

The total fixed assets of Air India as on 31st March, 2015 are Rs.34,695 crore.

(b):  Efforts have been made by Air India to monetize its Real Estate assets. To initiate the Monetization process, a global real estate consultant M/s DTZ was appointed by Air India through a global tendering process. An Oversight Committee comprising of a retired Supreme Court/High Court judge, a retired CVC and an ex-CAG, has been constituted to advise and oversee (i) the process of valuation of immovable assets owned / leased by Air India, (ii) the process of maximization of monetization of such assets, (iii) the procedure to be adopted for revenue generation out of such monetisation.

(c): No Madam.

(d): No debt has been retired by Air India out of sale proceeds as no property of Air India has been sold till date. Total Debt of Air India as on 31.3.2015 is Rs. 49,562 crores.

(e): The Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 12.04.2012, approved a Turnaround Plan (TAP)/ Financial Restructuring Plan (FRP) for operational and financial turnaround of Air India. The TAP/FRP provides equity infusion of of Rs.30231 crores upto 2021 subject to achievement of certain milestones as laid down in the TAP/FRP. Equity induction has been approved for the following:

(i) Upfront equity of Rs.6750 crore in FY 2011-12. (ii) Equity for Cash deficit support of Rs.4,552 crore till FY 2017-18. (iii) Equity for guaranteed aircraft loan till FY 2021 of Rs.18,929 crores.

For GOI guaranteed Non-Convertible Debentures(NCDs) an amount of Rs 11,951 crores towards interest and Rs 7400 crores towards principal.

As on date, equity of Rs.22,280 crores has been released to Air India under TAP/ FRP.

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(a): Following properties of Air India lying vacant

1.Land for Booking office , Chennai, Tamil Nadu 2.Land for Booking office,  Coimbatore,Tamil Nadu 3.Land for Booking office,  Bangalore,Karnataka 4.Land for office premises, Bangalore,  Karnataka 5.Land for Housing colony, Bangalore,   Karnataka 6.Land for Housing colony, Trivandrum,  Kerala 7.Land for Staff Quarters, Trivandrum,   Kerala 8.Land for Staff Quarters, Ahemadabad,  Gujarat 9.Land for Booking Office, Jamnagar, Gujarat 10.Land for Booking Office, Rajkot,  Gujarat

- 11.Residential land  Gurgoan, Haryana

Total volume of vacant fixed assets - 29 nos. (Freehold / Leased hold).

(b),(c) and (d): Total Debt of Air India as on 31.3.2015 is Rs. 49,562 crores Efforts have been made to monetize the property.  However, no revenue has been generated from these property so far.

(e): Under the Financial Restructuring Plan & Turn Around Plan Govt of India has approved financial turnaround and operational turnaround measures. The financial turnaround includes debt realignment and support from the Govt. of India. Accordingly Govt has approved equity infusion to the extent of Rs. 30,231 crores over a period of ten years besides guaranteeing the principal and interest payment of NCDs of Rs. 7400 crores.

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