Maharashtra Govt Buys Iconic Air India Building At Mumbai's Nariman Point For ₹1,601 Crore

The Maharashtra Government has now become the owner of the iconic Air India building at Nariman point. The proposal which the state government had sent last November was approved by the union government on Thursday. The State government has bought the entire Air India building for a whopping Rs 1,601 Crores.

The building was not part of Air India's privatisation plan. The building is a well known landmark in the high-profile Nariman Point area of Mumbai. In 1993, the majestic building facing the Arabian sea was targetted by terrorists.

The secretary, department of investment and public asset management has shared the information on Social Media site 'X'. He said "GOI has approved transfer of Air India building, Mumbai of AI Assets Holding Company Ltd to Government of Maharashtra (GOM) at Consideration of Rs 1601 Cr. GOM has agreed to waive off dues of Rs 298.42 Cr, which would have been Payable by Air India Assets Holding Limited (AIAHL) to GOM for this transaction." Now the building will become a part of the state government's ambitious plan for a central vista from Marine Drive to Mantralaya.

AIAHL is a Special Purpose Vehicle of the central government to manage Air India's debt and assets, after the airline's acquisition by the Tata group in January 2022.

The state government is facing a space crunch at the Mantralaya and its annexe building. State government was searching for a building near Mantralaya and finally decided to buy 23- storey sea Air India tower which is stone throw away from the Mantralaya.

The building was constructed in 1974 on reclaimed land. The state government had given the land to Air India on 99 years of lease. In 2013, the Air India headquarters was transferred from Mumbai to Delhi. But in 2018, Air India decided to dispose of the building as part of its asset monetisation plan.

Air India was expecting Rs 2,000 Cr but the Maharashtra Government was ready to pay Rs 1400 Crore. Another bidder LIC of India offered Rs 1200 Cr and JNPT offered to Pay Rs 1375 to buy the property.

Thereafter, the process then got stalled. The process again started when CM Eknath Shinde became CM. The State government increased its offer and was ready to pay Rs 1,601 cr and ready to waive off nearly Rs 300 Cr dues of the building.