<p>Cash-starved national carrier Air India is set to seal a real estate deal with State Bank of India, which has "in principle" agreed to acquire four of its posh residential properties in south Mumbai for Rs 90 crore.<br /><br /></p>.<p>The airline had been scouting for a buyer for its four tony flats on the Sterling Apartments on the upmarket Peddar Road in south Mumbai for the last two years, AI sources said.<br /><br />Its efforts in 2013 to sell these through e-auctions did not elicit good response. So were its attempts to lease out its iconic previous headquarters in the Nariman Point area of the megapolis.<br /><br />SBI Estate Manager was not available for comments.<br /><br />In August 2013, the national airline had floated bids for e-auctioning of these four flats. Each of these 3-BHK flats measures 2,033 sqft in carpet area.<br /><br />The deal has been facilitated as the airline has a working capital loan from SBI and it has agreed to retire the same, according to sources.<br /><br />"The deal is expected to be in place by this month," sources close to the development said.<br /><br />"Senior Air India officials held a meeting with the SBI management last week to discuss the sale, which should be finalised in the next couple of weeks," the sources said.<br /><br />As part of its Rs 5,000 crore land monetisation programme, the national carrier had decided to put on block these flats, along with some other properties, through an e-auction in August 2013, which did not elicit good response.<br /><br />"We did not get the desired results from the e-auction," the airline sources said.<br />Under the land monetisation plan, Air India plans to mop up Rs 5,000 crore over a 10-year period in its bid to bridge the widening mismatch in its renenue and expenditure.<br /><br />Surviving on the previous UPA dispensation's largesse, -- a Rs 30,000 crore bailout package beginning FY-13 through FY- 22 -- the accumulated loss of Air India stands at Rs 38,000 crore, besides a debt pile of Rs 40,000 crore.<br /><br />"We have some working capital borrowings from SBI, besides long-term loans. The funds raised from the sale proceeds will help reduce this working capital loan from, SBI besides reducing the interest outgo," the sources said.</p>
<p>Cash-starved national carrier Air India is set to seal a real estate deal with State Bank of India, which has "in principle" agreed to acquire four of its posh residential properties in south Mumbai for Rs 90 crore.<br /><br /></p>.<p>The airline had been scouting for a buyer for its four tony flats on the Sterling Apartments on the upmarket Peddar Road in south Mumbai for the last two years, AI sources said.<br /><br />Its efforts in 2013 to sell these through e-auctions did not elicit good response. So were its attempts to lease out its iconic previous headquarters in the Nariman Point area of the megapolis.<br /><br />SBI Estate Manager was not available for comments.<br /><br />In August 2013, the national airline had floated bids for e-auctioning of these four flats. Each of these 3-BHK flats measures 2,033 sqft in carpet area.<br /><br />The deal has been facilitated as the airline has a working capital loan from SBI and it has agreed to retire the same, according to sources.<br /><br />"The deal is expected to be in place by this month," sources close to the development said.<br /><br />"Senior Air India officials held a meeting with the SBI management last week to discuss the sale, which should be finalised in the next couple of weeks," the sources said.<br /><br />As part of its Rs 5,000 crore land monetisation programme, the national carrier had decided to put on block these flats, along with some other properties, through an e-auction in August 2013, which did not elicit good response.<br /><br />"We did not get the desired results from the e-auction," the airline sources said.<br />Under the land monetisation plan, Air India plans to mop up Rs 5,000 crore over a 10-year period in its bid to bridge the widening mismatch in its renenue and expenditure.<br /><br />Surviving on the previous UPA dispensation's largesse, -- a Rs 30,000 crore bailout package beginning FY-13 through FY- 22 -- the accumulated loss of Air India stands at Rs 38,000 crore, besides a debt pile of Rs 40,000 crore.<br /><br />"We have some working capital borrowings from SBI, besides long-term loans. The funds raised from the sale proceeds will help reduce this working capital loan from, SBI besides reducing the interest outgo," the sources said.</p>