Centre OKs transfer of Air India Building to Maha Govt for Rs 16.01 bn

The Centre announced that it had approved the transfer of the Air India building in Mumbai from Air India Assets Holding Company to the Maharashtra government for a sum of Rs 16.01 billion. This decision came within the purview of a company established by the Ministry of Civil Aviation in 2018, tasked with managing properties owned by Air India throughout India. According to the Department of Investment and Public Asset Management (DIPAM), the Maharashtra government has agreed to forego DIPAM dues amounting to Rs 2.98 billion, which otherwise would have been payable by AI Assets Holding Company Ltd for the transaction. The move follows the Maharashtra government's earlier resolution to procure the renowned Air India building situated in Nariman Point, Mumbai, at a price of Rs 16.01 billion. This resolution emerged from a cabinet meeting chaired by Chief Minister Eknath Shinde. Furthermore, the cabinet resolved to waive approximately Rs 2.50 billion of unrealised income and interest concerning the property. This property, initially leased to Air India for 99 years in 1970, is owned by the state government. To expedite the deal, transfer fees and penalties were waived by the cabinet. This decision is anticipated to result in savings of approximately Rs 2 billion per annum for the government in rental expenses. Erected in 1974 on state government-owned land, the building will be repurposed for office space. Approximately 46,470 square metres of office space will become available in the 23-story building owned by AI Assets Holding Company. Occupants currently utilising the building, such as tax departments and government-operated entities, will need to vacate the premises.