The Government on Wednesday approved an Air India proposal to sell its plot of land at Coimbatore in Tamil Nadu to National Building Construction Corporation (NBCC) Ltd for Rs 19.81 crore.
The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for "sale of plot measuring 0.99 acres belonging to Air India located at Pankaja Mills Road, Coimbatore for a consideration of Rs 19.81 crore," an official release said.
Last month also, Government had allowed the loss-making national carrier to sell four residential flats in Mumbai to public sector lender SBI for about Rs 90 crore as part of the airline's asset monetisation plan.
The sale process of the Coimbatore land parcel was undertaken by way of e-tender through Metal and Scrap Trading Corporation (MSTC), it said.
The asset monetization plan was approved along with its turnaround plan by the Cabinet Committee of Economic Affairs in April 2012.
Under the plan, Air India has to mop up Rs 5,000 crore over a 10-year period, starting from fiscal 2013-14, in its bid to bridge the widening mismatch in its revenue and expenditure.
Faced with substantial debt burden, the national carrier has been exploring various options to raise money to meet its funding requirements. These include sale of properties and land parcels.
Air India, whose debt burden is about Rs 40,000 crore, is surviving on a bailout package approved in 2012.
The erstwhile UPA dispensation had approved Air India's turnaround plan, with a committed public funding of Rs 30,231 crore, staggered over a period of nine years, with some specific riders.
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