Mumbai: The formal agreement for the transfer of the iconic Air India building at Nariman Point in Mumbai is set to be signed between the Maharashtra government and Air India Assets Holding Limited (AIAHL) within the next week, government officials said on Tuesday.
While the state government moved to purchase the building for Rs 1,600 crore nearly two-and-a-half years ago, the transaction had remained incomplete until recently.
The Finance Department has now officially transferred the required funds to the Public Works Department (PWD), clearing the path for the final handover.
According to the state government sources, the 23-storey building offers 46,470 square metre of the prime office space.
The building will house various state government offices currently operating out of rented premises.
Following the agreement, internal renovations are expected to take nearly one year before the building is fully ready for occupation.
In November 2023, the Maharashtra Cabinet had officially cleared the plan to purchase the building.
Subsequently, in March 2024, the Union government gave the final approval for the transfer of the asset from AIAHL to the state.
As part of the Cabinet decision, the state government waived nearly Rs 298.42 crore in dues (unrealised income and interest) owed by AIAHL.
Moving departments from private rentals into this building is expected to save the state nearly Rs 200 crore annually in rent.
At present, nine floors are vacant, while other floors are occupied by departments like the GST and Income Tax, which are expected to vacate to make room for state ministerial offices and departments currently scattered across South Mumbai such as those operating from the GT Hospital.
AIAHL was established in 2019 under the Ministry of Civil Aviation to manage the non-core assets and debt of Air India.
Following its inception, land and building assets valued at Rs 14,718 crore were transferred to the company to help settle the airline’s liabilities.
While the Central government officially handed over Air India’s ownership to the Tata Group on January 27, 2022 — following their successful Rs 18,000 crore bid in October 2021 — the building remained under government control via AIAHL for sale to the state.
The sea-facing landmark was designed by John Burgee of the renowned New York-based architectural firm Johnson/Burgee.
Built in 1974 on land provided by the state government, the building has been a permanent fixture of the Mumbai skyline for half a century.
“With the funds now transferred to the PWD, the legal formalities for the acquisition are being fast-tracked to ensure the state can consolidate its administrative offices under one roof,” officials said on Tuesday.
(IANS)
