Air India has signed an MoU with National Buildings Construction Corporation (NBCC) here for monetisation of surplus land assets of the national carrier.
Air India CMD Rohit Nandan said that this agreement to develop and redevelop some properties is to monetise the airline’s assets to the tune of Rs 5,000 crore over a period of 10 years.
The MoU has provided for three models of development of properties. In Model I, the land value will be the Air India interest in the partnership. Money on development of the project shall be the interest of the NBCC. In Model II, NBCC shall pay Air India a portion of the value of land as upfront money.
NBCC interest in the project would be the project cost and upfront money paid to Air India. In Model III, NBCC shall construct the project on behalf of Air India and development cost will be invested by NBCC and will charge fixed internal rate of return (IRR) on the project on its investment on mutually acceptable terms.
Published 05 December 2014, 18:54 IST