After a botched attempt to sell the government’s majority stake in Air India, the airline has invited bids for its iconic building at Nariman Point in Mumbai from “state governments and government entities only” for sale of leasehold rights of the land and the building. The last date for submission of the bids is February 5.
Restricting the sale of the Nariman Point building to states and state-owned entities is likely to limit the valuation of the property.
The United Progressive Alliance had in 2012 approved a bailout package for Air India, known as a 10-year Turnaround Plan/Financial Restructuring Plan (TAP/FRP) for the airline. The TAP/FRP, still under way, envisaged budgetary support of ₹30,231 crore spread over 10 years till March 2021 as well as equity support for the payment of principal and interest of non-convertible debentures. Read more