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The Maharashtra government is set to purchase the iconic Air India building at Nariman Point for INR 1,600 crore. The state government has expressed interest in acquiring the property in the past, and it has been reported that the AI Assets Holding Ltd., which owns the building, has given an in-principle agreement to the sale. However, the government has clarified that they will only proceed with the deal if they receive vacant possession of the building, as several state offices are housed in private spaces across south Mumbai, costing the government a significant sum of money every month.
The Air India building located at Nariman Point in Mumbai is a 23-storey commercial building that was leased to Air India in 1970 for 99 years by the state government. The iconic building offers floor space of 4.99 lakh square feet and has two basements and a tunnel. The building is situated on a sea-facing plot and is considered to be one of the landmarks of Mumbai's skyline.
The building has been vacant since February 2013 when Air India shifted its corporate office to New Delhi. The building was put up for sale in 2018, but the response was tepid. Air India officials claimed that the valuation of the building was more than 22,000 crores, while the state government countered that the actual price would be around 1,100-1,200 crore. Additionally, the state government has to recover dues from Air India.
In 2022, the Shinde-Fadnavis government increased its offer to 21,600 crores to make the building an extension of Mantralaya. In 2021, the MVA government offered Air India 1,450 crore. Deputy Chief Minister Devendra Fadnavis had met with Union Civil Aviation Minister Jyotiraditya Scindia last year to request preference for the Maharashtra government in the sale of the building. Besides the state government, the Reserve Bank of India was also said to be interested in purchasing the property.
Fadnavis has justified the government's push to acquire the property, stating that if they get the building, they can save the rent the state government is currently paying for private spaces across south Mumbai. The senior minister confirmed that the government was informed that offices of GST and the Income Tax Department are run out of there. The government also plans to shift ministerial offices to the Air India building, and all offices currently in private buildings that can be accommodated in Mantralaya. Some plans are also in discussion to connect the Mantralaya and the Air India building.
The purchase of the Air India building at Nariman Point by the Maharashtra government will help save rental costs for state offices and provide a new space for ministerial offices. However, it is essential to receive vacant possession of the building to avoid any issues in the future. Additionally, connecting the Air India building and Mantralaya will offer easier access for state officials and increase efficiency. The building's purchase will be a significant investment for the government and provide a prestigious location for state offices.
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