SBI is ready to buy residential property of Air India in south Mumbai

SBI to buy property of Air India

India’s leading public sector bank, State Bank of India has received all necessary approvals from government opportunities to buy residential properties of cash-starved national carrier, AI (Air India) in south Mumbai for Rs. 90 crore.

As per the sources of PTI, “State Bank of India has got all the required approvals as it has conveyed its willingness to buy residential and commercial properties from Air India. Now State Bank of India is waiting for the approvals to complete the procedure from their side. Now this state owned bank is planning to allocate these flats or apartments to its top executives of the rank of general managers and deputy managing directors.

Now Air India had been looking for buyers who can buy their properties which contain their four flats at up-market in Peddar road at south Mumbai since last two years. In August 2013, the Air India has floated e-auctioning bids for four flats. However these 3-BHK flats measures 2,033 sq ft in carpet area. On proposed real estate deal while confirming the communication from the bank, an Air India official stated that Indian airline has sent the proposal to the Civil Aviation Ministry for its approval. The more they added that the proposal is now in the side of Ministry for its approval. Air India has some of the working capital which they have borrowed from SBI, besides long terms loan. it is expected that the funds raised from the sale would help them to reduce their working capital loan besides reducing the interest outgo.

The decision to sell these flats or property is the part of national carrier’s plan to unlock the value in its land assets. Under the land monetization plan, now Air India is planning to mop up Rs. 5,000 crore in the period of 10-year to match the balance between its revenue and expenditure.