Government To Sell Four Subsidiaries Of Air India, Eight Other PSUs’ Assets
The government will sell four subsidiaries of Air India and properties of eight other state-owned companies that have been identified for strategic divestment.
The subsidiaries of Air India that have been identified by the Department of Investment and Public Asset Management during the due diligence process for strategic divestments are:
- Air India Engineering Services Ltd: Involved in the maintenance, repair and overhaul of engines and airframe.
- Air India Air Transport Service: Tasked with ground handling and cargo handling services.
- Hotel Corporation of India: Owns and operates two hotels in Delhi and Srinagar and chef air kitchen units in Delhi and Mumbai.
- Airline Allied Services Limited: Provides connectivity to tier-II and tier-III cities and links them to metro hubs.
The government, according to a document on the department’s website, will also monetise Air India’s total investment of Rs 1,598 crore in these subsidiaries, trade investments worth Rs 73 crore and an investment of Rs 76 lakh in France Telecom.
Sale of these subsidiaries didn’t figure in the first expression of interest of Air India that the government came out with. The expression of interest had said that these subsidiaries will be hived off through demergers or other appropriate mechanisms which may be determined by the Ministry of Civil Aviation.
Properties Under The Block
The government, according to the document, will also sell:
- Air India’s “Airlines House” building in New Delhi, Hangar Number 4 at Terminal 1 of New Delhi Airport.
- The 34,125-square metre Air India Complex in Santacruz, Mumbai.
- All other “land and buildings owned, leased, licensed or possessed by AI, various articles of arts and artefacts”.
- The Pawan Hans’ Rohini Heliport after demerging it into a separate company.
- Bellman Hangar at Safdarjung airport, which was taken on lease from Airports Authority of India by Pawan Hans.
- Land holdings and properties of: Hindustan Prefabs Ltd., Bridge and Roof Co. (India) Ltd., Scooters India Ltd., Bharat Pumps and Compressors Ltd., Hindustan Fluorocarbons Ltd. and Projects and Development India Ltd.
These assets have been identified for hiving off, and the mode and manner of disposal will be intimated by the department when the actual process is initiated, according to the document.