Air India will reduce its debt by Rs 4500 crore through redesignation of its residential colony at Vasant Vihar, Delhi. Two officials aware of the case gave this information. Officials said the National Building Construction Corporation (NBCC) has presented a detailed plan for monetization of the 30-acre site.
Expected 7000 crores
According to officials, after reducing the construction cost, they expect a surplus of Rs 4250 crore. They expect the project to generate total revenue of Rs 7000 crore.
Plans for 1700 flats
Under the plan, a 14-story building with 1700 flats will be built there. There will be 960 flats for the economically weaker sections. We will also construct a school and community facility in this area.
NBCC Director (Projects) Nilesh Shah said, ‘The colony has 810 flats. By building a 42-meter-high building, we will arrange such an additional amount which will help Air India reduce debt. It will do the development of the colony in two phases so that the people living there do not have to relocate at once.
Plan to sell 111 properties did not work
A government official said that the inter-ministerial note has been circulated, giving information about the proposal. He said that now it will be sent to the cabinet for approval. Two years ago, cash-strapped Air India had taken a step to sell 111 properties and had a total price tag of Rs 9500 crore. Of this, so far she has been able to sell only 32, from whom she has got about 1000 crores.
In 2011-12, the government made a turnaround plan for Air India and asked it to sell properties worth Rs 500 crore every year. However, most transactions have taken place in the last two years.
AI had a loan of 59000 crores
Air India had a debt of Rs 59000 crore. Of this, the government transferred a loan of Rs 29400 crore last year to Air India Asset Holdings, a special purpose vehicle.
There was a huge loss in 2018-19
The government is repaying the debt by issuing its guaranteed bonds in three phases. It is also considering an option to reduce the remaining Rs 30,000 crore debt by half. The proceeds from the sale of the property will also go to the SPV.