The permission has been given to redevelop two plots of lands — a 30-acre plot in Vasant Vihar in South Delhi, and a 3.54-acre plot on Baba Khadak Singh Marg in Connaught Place in the heart of the city.
The permission is to ‘monetize/redevelop’ the land parcels, NBCC said.
It has previously been reported that the government hopes to create buildings on the plot, sell them and repatriate the funds to the cash-strapped airline.
It is estimated that the move will generate between 5,000-7,000 cr, which will help Air India pay back some of its considerable debt.
The plots could not be directly sold or monetized by Air India, requiring the government to step in.
The Vasant Vihar plot has around 800 apartments. Many of the commercial establishments in the colony have already been served eviction notices.
There are no structures on the Connaught Place plot.