Receiving good response from the government entities, Air India now plans to lease its properties to them while discarding the applications by the private sector companies.
Air India is really happy that their plan to lease its assets in Delhi will be a great success. The airlines hope that their lease plan will fetch a good amount of money.
Many government entities like State Bank of India, Life Insurance Corporation, etc. have already conveyed their interest in leasing out Air India properties.
The property is located on Baba Kharak Singh Marg near Connaught Place. Being located close to Connaught Place which is one of the top commercial hubs in the Capital, the property is highly demanded.
The property consists 1.7 lakh sq. ft. of office space. So those who lease out this property will be able to enjoy all benefits of this prime location and other location advantages.
However it seems that it is impossible for the private firms to enjoy these advantages. Though the private companies were also showing interest, Air India has no plans to lease to the private companies.
SBI and LIC are the two forerunners who have shown keen interest in leasing this property. Oil and Natural Gas Corp also has shown interest in the property which is located in the central Delhi.
The monetization scheme was announced in February. The monetization program is considered as part of their debt-alleviation scheme. The debt driven Air India expects to raise over Rs.5000 Cr through leasing their realty assets.
Besides their Delhi Property, the national carrier will lease properties in Mumbai and other cities. Some of their overseas properties also are expected to be leased.
The monetization program is expected to be executed within three years. Commenting on the decision to lease out the property to government entities, an Air India senior executive said that the airline does not wish to see private companies to handle government properties.