- Maharashtra government acquired Air India building for Rs 1,601 crore at Nariman Point
- Transfer completed at Mantralaya with CM Devendra Fadnavis present after cabinet meeting
- Building was on state land, owned by AIAHL after Air India privatisation by Tata Group
The Maharashtra government has formally acquired the iconic Air India building, a defining feature of the south Mumbai skyline known for its prime sea-facing location, for Rs 1,601 crore.
The transfer of agreements between Air India Assets Holding Company and the state Public Works Department was completed in the presence of Chief Minister Devendra Fadnavis at the state secretariat ‘Mantralaya' following a cabinet meeting on Tuesday, an official release said.
The Air India building, a 23-storey sea-facing commercial tower at Nariman Point in south Mumbai built in 1974 on state government-owned reclaimed land, has long been one of the city's landmarks, known for drawing crowds in its early days for experiences like riding its elevators.
Following the privatisation of Air India and its acquisition by the Tata Group, its non-core assets, including this building, were vested with Air India Assets Holding Limited (AIAHL).
The Maharashtra government, facing an office space crunch in prime South Mumbai areas near Mantralaya, had been in talks since at least 2021 for the acquisition of the property.
In November 2023, the state cabinet had approved the purchase for Rs 1,601 crore and decided to waive around Rs 298 crore in unrealised income and interest dues owed by AIAHL. The Centre had granted final approval for the transfer in March 2024.
The deal moved closer to completion in April this year with the Finance Department transferring Rs 1,600 crore to the Public Works Department (PWD) for finalising agreements, aiming to consolidate government offices in the over 45,000 sqm structure and reduce rental expenses.
PWD Minister Shivendrasinh Bhosale, who was present during the ownership transfer, said the state government took possession of the building after acquiring the property from AIAHL for Rs 1,601 crore.
At a review meeting held after the handover, minister Bhosale directed officials to conduct a comprehensive structural audit and undertake all necessary repairs before relocating government offices to the premises.
He said interior renovation and other development works should begin only after structural safety concerns are addressed.
All repair and refurbishment work should focus on quality and long-term sustainability, he stressed and instructed officials to ensure high standards for electrical systems, fittings and other technical infrastructure.
The minister said the building's main entrance should be redesigned to reflect Maharashtra's heritage, and suggested involving leading architects and expert agencies in the project.
He directed officials to expedite administrative approvals required for the renovation work and ensure timely completion of the project.
“The transfer of the Air India building to the Maharashtra government is an important milestone in strengthening the state's administrative infrastructure. The building will be developed as a model government complex with priority given to quality, sustainability and citizen convenience,” he said.
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 officials of Air India attended the event, marking the formal transfer of ownership.
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