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Divestment-bound national carrier Air India Ltd has raised 738 crore from the sale of its real estate assets so far, while also realizing a rental income of about 100 crore annually from its properties, minister of state for civil aviation V.K. Singh told the Lok Sabha on Thursday.

Responding to a question from member of parliament Gurjeet Singh Aujla, Singh said Air India has sold 115 units of real estate assets between 2015 and 2021 (up to 12 July).

“Air India has identified 111 parcels of properties for monetization, out of which 106 parcels of properties are in India and the rest five are overseas properties," Singh said in his written response.

“The 111 parcels of properties consist of 211 units which are under monetization," he said.

Air India had earlier in July held an e-auction to sell several properties, including offices, flats and staff quarters at major metros such as New Delhi, Mumbai, Kolkata, Ahmedabad, Bengaluru, Mangaluru, Nashik and Nagpur. These properties include residential units at New Delhi’s Asian Games Village Complex, flats at Bandra’s Pali Hill neighbourhood, flats at Kolkata’s Golfgreen locality and the airline’s booking office at Nagpur, among others.

The e-auction, which closed on 9 July, received a fair amount of interest from buyers and investors, considering the covid pandemic, a senior Air India official said, adding that the airline aims to raise about 200 crore to 300 crore from its asset monetization plan during the ongoing fiscal.

The official requested anonymity.

It may be a challenge for Air India to raise a substantial amount of money from property sales as the real estate market hasn’t yet recovered from the impact of the pandemic, said a senior aviation analyst with a foreign consultancy, who’s been tracking the airline for sometime. “The sales during the pandemic will depend on the valuation put up by the airline and the location of these properties," the person added, requesting anonymity.

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