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In a significant development, the Union government has given the green light to transfer ownership of the iconic Air India building in Mumbai to the Maharashtra state government. This transfer, valued at Rs. 1,601 crore, also includes the waiver of outstanding dues amounting to approximately Rs. 300 crore, paving the way for a landmark transaction.
Department of Investment and Public Asset Management (Dipam) secretary, Tuhin Kanta Pandey, confirmed the approval, stating, “The Centre has approved the transfer of Air India building in Mumbai to the Government of Maharashtra at a consideration of Rs. 1,601 crore.” Additionally, the Maharashtra government has agreed to waive dues totaling Rs. 298.42 crore, which would have been payable by AI Assets Holding Ltd (AIAHL) for this transaction.
AIAHL, established as a special purpose vehicle (SPV) in 2018, was tasked with managing residual non-core assets of Air India following its acquisition by the Tata group in 2022. The building, a prominent landmark in Mumbai, is among the assets under AIAHL’s purview.
The decision to transfer ownership of the Air India building follows the government’s successful privatization of the debt-laden airline, with Tata Sons securing the bid for Rs. 18,000 crore in October 2021. The transaction marked the culmination of a five-year effort to privatize Air India, with ownership formally transferred in January 2022.
The 23-storey building, constructed in 1974, boasts 46,470 square meters of space and holds historical significance in Mumbai’s landscape. Various entities, including the Jawaharlal Nehru Port Authority (JNPA) and the Life Insurance Corporation (LIC) of India, had expressed interest in acquiring the property. The Maharashtra government, under Chief Minister Eknath Shinde’s leadership, revised its bid to Rs. 1,600 crore, eventually securing the transaction.
The transfer of the Air India building to the Maharashtra government underscores the state’s strategic vision for utilizing the prime real estate asset. As plans unfold for its future utilization, this landmark transaction represents a significant milestone in the state’s development trajectory and underscores the collaborative efforts between the central and state governments in fostering economic growth and development.
Sources By Agencies
