The Maharashtra cabinet has approved the plan to buy the Air India Building in Nariman Point, Mumbai, to house government offices. As part of the deal, the state will pay Rs 1,601 crore to Air India Assets Holding Ltd, which was formed by the Centre and owns several Air India properties. The acquisition will provide 46,470 sq m of space across the 23-storey tower. This move is expected to save the government around Rs 200 crore in annual rent if all offices housed in private properties are relocated to the Air India Building.
Previously occupied by Tata Consultancy Services and other private companies, the tower currently houses offices of tax departments under the Ministry of Finance, as well as some government-run undertakings. The current occupants will need to vacate the property. The building, designed by American architect John Bugee, was completed in 1974 with its iconic centaur symbol on the roof.
The building stands on land leased to Air India for 99 years starting from 1970. To expedite the deal and facilitate the transfer of the building to the state, the cabinet has waived the transfer fees and some penalties usually associated with such transactions. The negotiations for the purchase began in 2018, but talks did not progress until 2022, when Maharashtra made a final offer of Rs 1,600 crore, which was agreed to by AI Assets Holdings Ltd.
Deputy Chief Minister Devendra Fadnavis had sought the civil aviation minister’s support for the state’s bid in 2022. Besides the Maharashtra government, the Reserve Bank of India was also interested in purchasing the building. Faced with a space crunch, the state administration needed additional space to consolidate all offices under one roof.
Air India had previously attempted to sell the building in 2018 but received a lukewarm response to the tender. The acquisition of the Air India Building will provide the Maharashtra government with a prestigious address for housing its offices.
