MUMBAI, India — The Maharashtra government is set to sign a formal agreement next week to acquire the iconic Air India building at Nariman Point, bringing to a close a deal that has been pending for more than two years, officials said Tuesday.
The state had moved to purchase the sea-facing property for about Rs 1,600 crore, but the transaction remained incomplete until recently. The process gained momentum after the Finance Department transferred the required funds to the Public Works Department, clearing the way for the final handover.
Government sources said the 23-story building offers roughly 46,470 square meters of prime office space and is expected to house multiple state departments currently operating out of rented offices across Mumbai.
Officials said the building will undergo interior renovations after the agreement is signed, with work likely to take about a year before it is fully ready for occupancy.
The Maharashtra Cabinet approved the purchase in November 2023, followed by final clearance from the Union government in March 2024 for the transfer of the asset from Air India Assets Holding Limited to the state.
As part of the arrangement, the state waived nearly Rs 298.42 crore in outstanding dues owed by Air India Assets Holding Limited, including unrealized income and interest.
By consolidating departments into the building, the government expects to save close to Rs 200 crore annually in rental costs.
Currently, nine floors of the building are vacant, while others are occupied by central government offices, including GST and Income Tax departments. Those offices are expected to vacate to make room for state ministries and departments that are now spread across South Mumbai, including some operating out of GT Hospital.
Air India Assets Holding Limited was established in 2019 under the Ministry of Civil Aviation to manage the airline’s non-core assets and debt. Assets worth Rs 14,718 crore, including land and buildings, were transferred to the company to help address Air India’s liabilities.
Although the Tata Group took control of Air India in January 2022 following its successful Rs 18,000 crore bid, the Nariman Point building remained under government ownership through the holding company for eventual sale to the state.
Designed by John Burgee of the New York-based firm Johnson/Burgee, the building was completed in 1974 on land provided by the state government and has remained a prominent feature of Mumbai’s skyline for decades.
“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. (Source: IANS)
