Maharashtra Govt gets iconic Air India building for a whopping Rs 1,601 crore

PTC Web Desk: The Central Government has given approval for the sale of the renowned Air India building in Mumbai to the Maharashtra Government for a sum of Rs 1,601 crore. Situated in the prestigious Nariman Point area, the building, which holds significant historical and architectural value, was not initially included in Air India's privatisation plans.

Facing space constraints at the Mantralaya and its annex, the Maharashtra Government intends to alleviate this issue by relocating some of its offices to the 23-storey sea-facing structure, conveniently located near the state secretariat. In November last year, the Maharashtra Cabinet greenlit the acquisition worth Rs 1,601 crore.

Announcing the decision, Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), said the Central Government had agreed to transfer the Air India building to the Government of Maharashtra at the aforementioned sum. Moreover, the Maharashtra Government had waived dues totaling Rs 298.42 crore that Air India Assets Holding (AIAHL) would have otherwise been liable to pay.

Originally constructed in 1974 on land leased by the state government to Air India, the building, designed by architect John Burgee, is regarded as a prominent fixture in Mumbai's skyline. It survived the devastating 1993 Mumbai serial blasts, which targeted several landmarks in the vicinity.

In 2018, Air India initiated plans to sell off the building as part of its asset monetisation strategy, with a price tag of Rs 2,000 crore. Various entities, including the Maharashtra Government, expressed interest, with the latter eventually raising its offer to Rs 1,601 crore. This decision was accompanied by the waiver of approximately Rs 300 crore in dues, primarily relating to unrealised income and interest on the leased land.

Following discussions initiated by the Eknath Shinde-led Maharashtra Government, the acquisition negotiations resumed, leading to the final agreement. The Maharashtra Government's preference for the sale was expressed during discussions between Maharashtra Deputy Chief Minister Devendra Fadnavis and Union Civil Aviation Minister Jyotiraditya Scindia in 2022.

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The acquisition of the Air India building provides the Maharashtra government with approximately 46,470 square metre of additional office space in close proximity to the Mantralaya. Currently, nine floors of the building remain unoccupied, with the Goods and Services Tax (GST) offices occupying three floors and the Income Tax Department occupying eight floors. The ground and first floors are under the jurisdiction of Air India.

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