After renting out most of the space in its landmark Air India Building in Mumbai’s Nariman Point area, the national carrier has now started the process to lease out around 25,500-square-feet space at the Kolkata office complex. The airline, which turned operationally profitable for the first time in a decade in 2015-2016 fiscal, is pursuing ways to revive its financial fortunes amid competition.
Air India has sought bids for leasing out three of its six-storied building at C R Avenue locality of Central Kolkata. The move is part of its asset monetisation programme, which kick started in 2016, after a delay of almost four years.
“Air India intends to give on lease and license basis a total built up area of 25,449 sq ft of its own six-storied building in Kolkata,” stated the Request for Proposal (RFP) document.
The area would be leased out on “as is where is basis”. The technical bids would be opened on February 23 while the financial bids would be opened on March 16 this year.
According to the turn around plan/financial restructuring plan approved by the Cabinet Committee on Economic Affairs (CCEA) n 2012, Air India is required to monetise its assets and generate INR 5,000 crore by way of sale, leasing or developing an asset as a joint venture.
Under the plan, the carrier is to get financial assistance to the tune of INR 30,000 crore over a 10-year period.
So far, the carrier has been able to sell four of its flats in Mumbai to SBI for INR 90 crore. Besides, Air India has leased out almost the entire space at its previous headquarters in Mumbai to various government agencies.
In December 2014, Air India and NBCC had entered into an MoU to monetise its land. Even after two years of inking that pact, the plan is yet to take off.
(PTI)
