Air India Prioritizes Government Enterprises for Delhi Realty Assets Lease
Facing substantial debt, Air India is strategically planning to lease its real estate assets on Baba Kharak Singh Marg in Delhi. However, the airline company has communicated a clear preference: it will not divest its properties to private entities but will, instead, lease them exclusively to government enterprises.
While outlining its intentions to lease its Delhi-based real estate assets, Air India has underscored that governmental bodies will receive priority. Several entities, including ONGC, LIC, and SIB, have already expressed considerable interest in leasing Air India's properties.
Private sector corporations may not have the opportunity to lease property from Air India, since this company prefers government entities.
Monetization Program Details
As a key component of its elaborate monetization program, Air India is poised to lease approximately 170,000 square feet of centrally located office space in Delhi. This strategic property is situated on Baba Kharak Singh Marg.
Although numerous private sector firms have made approaches to the national carrier regarding leasing opportunities, Air India authorities have firmly stated that preference will be granted to state-owned enterprises.
The monetization initiative commenced in February, conceived as a plan to effectively manage and alleviate the airline's debt burden.
Air India's monetization strategy extends beyond Delhi, encompassing the leasing of properties throughout India and even select overseas assets.
Through the calculated leasing of these real estate assets, the airline aims to garner Rs. 5,000 crore. The comprehensive leasing plan is projected to be executed within a three-year timeframe.
Despite a persistent debt burden, the national carrier maintains its strategic focus on government entities, refraining from selling properties to private companies.
Leading contenders to secure these leasing opportunities include Life Insurance Corporation, Oil and Natural Gas Corp, and State Bank of India.
In elucidating the rationale behind favoring government entities, a senior executive at Air India articulated that leasing to such entities ensures the property effectively remains under government ownership.
if the property is leased to one of them it will remain as the property of the government.
Air India prefers government entities while leasing its properties in Delhi.
LIC, SIB, ONGC, etc. have showed their interest in leasing Air India property in Delhi.