• Deccan Chronicle
  • Andhra Bhoomi
  • Asian Age
  • ePaper
  •  Auto Refresh
Home

ePaper
Last Updated:05:48 AM IST | Saturday, Jan 28, 2023
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Menu
  • Home
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
Home > Politics, Plan and Policy > Air India may sell iconic Nariman Point property to shipping ministry
Politics, Plan and Policy
Air India may sell iconic Nariman Point property to shipping ministry
Nirbhay Kumar
By  
  , Published : Jun 25, 2018, 5:48 am IST | Updated : Jun 25, 2018, 5:48 am IST

Proposal mooted by PMO; major ports may fund the purchase

Air India may sell iconic Nariman Point property to shipping ministry
Air India may sell iconic Nariman Point property to shipping ministry

The iconic Air India building on Queen’s necklace in Mumbai may be consumed by the survival woes of the national carrier. A plan is under way to sell the 23-storey prime property to raise funds for the cash-strapped airline. Sources said the shipping ministry is considering a proposal to buy the premium real estate.

“The proposal has been presented to the shipping ministry. There are 12 major ports under the shipping ministry, which have sufficient cash reserve. This can be used to buy the Nariman Point property,” a source said. The source further said the proposal was mooted following a directive from the prime minister's office (PMO) a few days ago. It was discussed in the parent aviation ministry with Air India officials and taken forward.

The shipping ministry is examining the possibility of making an outright purchase or leasing the building out on long-term agreement. A final decision would be taken after discussions with the chiefs of major ports.

Major ports have been posting steady growth in cargo handling and have a combined net surplus of Rs 2,820 crore as on March, 2017. “Since the transaction would take place between government agencies, it will not be questioned by CVC, CBI or CAG. In case it is given to a private company, even through proper tendering, questions would be raised,” one of the sources said. An e-mail query on the proposed move sent to junior aviation minister Jayant Sinha and separately to aviation secretary RN Choubey did not receive any response till going to the press.

Sources in Air India said that the Nariman Point building could be valued at Rs 2,000 crore, but questioned the proposal saying that it is not a dead asset. The building has been earning good money for the airline. “The annual income is about Rs 90 crore-Rs 100 crore from the building. There is no reason why it should be sold or given away to some other government department,” he said.

The national carrier earned Rs 291 crore as lease rental from its prized Nariman Point building between 2012-13 and January 2018. In all, Air India monetised a sum of Rs 543.03 crore from its fixed assets during this period.

“Normally, when government sells an asset it goes through the auction process. In this case, the shipping ministry may be looking for space and a government-to-government transfer is being considered. Government departments are also expanding and they need space. In this case, Air India does not need space while shipping ministry probably needs more office space,” said Anshuman Magazine, chairman, India & South East Asia, CBRE South Asia.

Earlier, in a major blow to the Modi government's disinvestment plan, no takers came for acquiring 76 per cent of the airline's stake on offer. This forced the government to call off the selloff plan for now and wait for the investor sentiment to improve. Saddled with a debt of Rs 50,000 crore, Air India has been surviving on taxpayer money since 2012.

end-of
Location: 
India, Delhi, New Delhi
Latest From Politics, Plan and Policy
As per the finance ministry, Finance Minister Nirmala Sitharaman will meet stakehokder groups of 'New Economy: Start-ups, Fintech and Digital Sector' on Monday morning, and financial sector and capital market representatives later in the day. (Photo: File | ANI)

FM Sitharaman to hold pre-Budget meetings with stakeholders beginning today

Brent crude futures were up 19 cents, or 0.3 per cent, at USD 62.47 a barrel.

Oil rises amid optimism over OPEC supply cuts, hopes on US-China trade

Traders are now eyeing next month’s meeting between the OPEC and Russia to determine if the group would deepen output cuts to prop up prices. (Photo: Twitter)

Oil slips as US-China trade deal hopes dwindle

Most Popular

Mukesh Ambani 9th richest on Forbes' real-time billionaires list
Top credit card myths harmful for your financial well-being
Microsoft CEO Satya Nadella tops Fortune's Businessperson of the Year 2019
Employment growth slowed down in last two years: report
GST structure: key challenges and its solutions

Editor's Picks

Income tax e-filers drop by over 6.6 lakh in FY19: Official data
Swiping on your smartphone reveals a lot about you to your social media company
  • Read Financial Chronicle as it appears in print.
  • Subscribe, and get it delivered in the inbox everyday.
  • Politics, Plan And Policy
  • Markets
  • Companies
  • Economy
  • In Other News
  • Autos
  • Just In
  • Home
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Guidelines
  • Copyright © 2019 Financial Chronicle, All rights reserved
Developed & Maintained By Daksham