Maharashtra Acquires Air India Building in Mumbai
The Maharashtra government has officially obtained the famous Air India building, a notable element of the south Mumbai skyline recognized for its prime location facing the sea, for Rs 1,601 crore.
The handover of agreements between Air India Assets Holding Company and the state Public Works Department was finalized with Chief Minister Devendra Fadnavis present at the state secretariat ‘Mantralaya’ after a cabinet meeting.
The Air India building, a 23-story commercial tower facing the sea at Nariman Point in south Mumbai, was constructed in 1974 on reclaimed land owned by the state government and has historically been one of the city's iconic sites, attracting crowds in its early days for activities such as riding its elevators.
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After Air India's privatisation and its purchase by the Tata Group, its non-essential assets, such as this building, were transferred to Air India Assets Holding Limited (AIAHL).
The Maharashtra government, dealing with a shortage of office space in key South Mumbai locations close to Mantralaya, has been negotiating for the purchase of the property since at least 2021.
In November 2023, the state cabinet approved the acquisition for Rs 1,601 crore and chose to forgive approximately Rs 298 crore in unrealized income and interest payments owed by AIAHL. The Centre provided final authorization for the transfer in March 2024.
In April this year, the Finance Department allocated Rs 1,600 crore to the Public Works Department (PWD) to finalize agreements, bringing the deal closer to completion with the goal of consolidating government offices in the 45,000 sqm building and lowering rental costs.
PWD Minister Shivendrasinh Bhosale, who attended the ownership transfer, stated that the state government obtained the building after purchasing the property from AIAHL for Rs 1,601 crore.
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During a review meeting conducted after the handover, Minister Bhosale instructed officials to perform a thorough structural audit and carry out all essential repairs prior to moving government offices to the location. He stated that interior renovations and other construction activities should commence only once structural safety issues are resolved.
He emphasized that all repair and refurbishment tasks must prioritize quality and long-term sustainability, directing officials to maintain high standards for electrical systems, fittings, and other technical infrastructure. The minister stated that the primary entrance of the building needs to be reimagined to showcase Maharashtra’s heritage, proposing the inclusion of prominent architects and specialist agencies in the initiative.
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He instructed officials to accelerate the necessary administrative approvals for the renovation and guarantee the project is finished on time. Deputy Chief Minister Sunetra Pawar, Tourism Minister Shambhuraj Desai, Public Works Minister Shivendrasinhraje Bhosale, Chief Secretary Rajesh Agrawal, Additional Chief Secretary (PWD) Milind Mhaiskar, Mumbai City Collector Anchal Goyal, and Air India officials were present at the event, signifying the official transfer of ownership.