Centre transfers Air India building to Maharashtra govt for Rs 1,601 crore

Air India building sale: The central government has finalised the transfer of the iconic Air India building in Mumbai to the government of Maharashtra for a total consideration of Rs 1,601 crore. The Department of Investment and Public Asset Management (DIPAM) has granted approval for the transfer of the Air India building, Mumbai, owned by AI Assets Holding Company Ltd (AIAHL), to the Government of Maharashtra.

As part of this transaction, the Maharashtra government has agreed to waive dues amounting to Rs 298.42 crore, which would have been payable by AIAHL to the Government of Maharashtra.

The decision comes after the Maharashtra government, in November last year, approved the proposal to acquire the sea-facing Air India Building in Nariman Point to accommodate government offices. As per the terms of the deal, the state will pay Rs 1,601 crore to Air India Assets Holding Ltd, established by the central government to manage and divest various Air India-owned properties.

The acquisition provides the Maharashtra government access to a sprawling 46,470 square meters of space within the 23-storey tower, renowned as one of Mumbai's architectural landmarks. Officials estimate that the government stands to save approximately Rs 200 crore annually in rent by relocating offices currently housed in private properties to the Air India Building.

Formerly occupied by Tata Consultancy Services and other private firms alongside the airline itself, the tower presently accommodates tax department offices under the Ministry of Finance, among other government-run establishments. Existing occupants will be required to vacate the premises to facilitate the transition.

(With ANI inputs)