MUMBAI: On Tuesday, the Maharashtra government officially acquired the renowned Air India building, a standout feature of Mumbai’s skyline, for Rs 1,601 crore.
The agreement transfer between Air India Assets Holding Company and the state Public Works Department (PWD) was finalized in the presence of Chief Minister Devendra Fadnavis, following a cabinet meeting at ‘Mantralaya’, the state secretariat.
Attendees included 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.
Built in 1974, the iconic 23-storey Air India building at Nariman Point has been a landmark in the city, gaining popularity for its elevators during its heyday.
After Air India’s privatization and acquisition by Tata Group, this building, along with other non-core assets, was transferred to Air India Assets Holding Limited (AIAHL).
The Maharashtra government, facing a shortage of office space near Mantralaya, began negotiations for this acquisition back in 2021.
In November 2023, the state cabinet sanctioned the purchase for Rs 1,601 crore, which included waiving approximately Rs 298 crore in unpaid income and interest owed by AIAHL. The Central Government granted final approval for the transfer in March 2024.
The Finance Department transferred Rs 1,600 crore to the PWD in April this year to finalize agreements, with plans to consolidate government offices in the over 45,000 sqm structure and reduce rental costs.
Minister Bhosale confirmed that the state government officially took possession of the building for Rs 1,601 crore and instructed officials to conduct a thorough structural audit and perform necessary repairs before relocating government offices.
He emphasized that renovation work should commence only after addressing structural safety concerns and ensuring high standards for all technical infrastructure.
The main entrance should reflect Maharashtra’s heritage, and he recommended consulting leading architects and expert agencies for the project.
He also urged officials to expedite the administrative approvals required for renovation work and ensure timely project completion.
Bhosale stated, “The transfer of the Air India building marks a significant step in enhancing the state’s administrative infrastructure. This building will be transformed into a model government complex with a focus on quality, sustainability, and public convenience.”
