Maharashtra government to buy Air India's building for Rs 1,600 crore
Real Estate

Maharashtra government to buy Air India's building for Rs 1,600 crore

Deputy chief minister Devendra Fadnavis had met Union civil aviation minister Jyotiraditya Scindia last year and urged him to give preference to the Maharashtra government in its attempt to sell the iconic Air India building at Nariman Point. Besides the state, the Reserve Bank of India (RBI) was said to be in the fray for the building.

The senior minister confirming a likely deal said: “We have been told that the AI Assets Holding, which owns the building, has in-principle agreed to give it to us. Finer details will be worked out but our offer is conditional. We were told offices of GST and the incometax department run out of there. Some floors are with the state-owned company and one of the floors houses art collections and other items. We will only go ahead with the deal if we get vacant possession, we don’t want to appoint a new agency to get the premises vacated, it will be very tedious. ”

Justifying the government’s push to acquire the property, the minister said: “If we get the building, we can save the rent the state government is paying right now. Several state offices are housed in private spaces across south Mumbai and is costing a huge sum every month.”

Ministerial offices can be shifted to the Air India building and all offices currently in private buildings can be accommodated in Mantralaya, said a senior official. “There are some plans to connect Mantralaya and the Air India building, but it is still at a discussion stage.”

AI officials had told thestate government that according to them, the valuation of the building was more than Rs 2,000 crore. “The government needs to recover dues from Air India to the tune of around Rs 300 crore,” pointed out the state official. After Fadnavis started talks for the building during his chief ministership, talks had resumed in 2021 under the MVA government, but no deal was finalised, added the official.

Also Read
80ft Master Plan road for Rs 63 mn giving relief to Tirupati residents
MoRTH to establish credit rating metric for private construction firms

Deputy chief minister Devendra Fadnavis had met Union civil aviation minister Jyotiraditya Scindia last year and urged him to give preference to the Maharashtra government in its attempt to sell the iconic Air India building at Nariman Point. Besides the state, the Reserve Bank of India (RBI) was said to be in the fray for the building. The senior minister confirming a likely deal said: “We have been told that the AI Assets Holding, which owns the building, has in-principle agreed to give it to us. Finer details will be worked out but our offer is conditional. We were told offices of GST and the incometax department run out of there. Some floors are with the state-owned company and one of the floors houses art collections and other items. We will only go ahead with the deal if we get vacant possession, we don’t want to appoint a new agency to get the premises vacated, it will be very tedious. ” Justifying the government’s push to acquire the property, the minister said: “If we get the building, we can save the rent the state government is paying right now. Several state offices are housed in private spaces across south Mumbai and is costing a huge sum every month.” Ministerial offices can be shifted to the Air India building and all offices currently in private buildings can be accommodated in Mantralaya, said a senior official. “There are some plans to connect Mantralaya and the Air India building, but it is still at a discussion stage.” AI officials had told thestate government that according to them, the valuation of the building was more than Rs 2,000 crore. “The government needs to recover dues from Air India to the tune of around Rs 300 crore,” pointed out the state official. After Fadnavis started talks for the building during his chief ministership, talks had resumed in 2021 under the MVA government, but no deal was finalised, added the official. Also Read 80ft Master Plan road for Rs 63 mn giving relief to Tirupati residents MoRTH to establish credit rating metric for private construction firms

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement