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Mumbai's Air India Building Transferred to Maharashtra Govt for ₹1,601 Crore

Mar 14, 2024 1 min read

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The iconic Air India building in Mumbai, a 23-story high-rise designed by American architect John Burgee of the firm Johnson/Burgee, is set to change hands from AI Assets Holding Company Ltd (AIAHL) to the Government of Maharashtra (GoM) following approval from the Centre. The deal, valued at Rs 1,601 crore, includes a waiver of Rs 298.42 crore in dues by the Maharashtra government that were originally owed by AIAHL. This waiver was sanctioned by the Department of Investment and Public Asset Management (DIPAM).

The transfer of the Air India building is part of the government's broader Air India divestment strategy, which includes managing the airline's significant debt and offloading non-core assets. For Maharashtra, acquiring the 46,470 square meter space within the tower holds strategic importance due to its proximity to the state's administrative headquarters. By relocating offices from rented spaces to the Air India building, the state government estimates an annual savings of around Rs 200 crore. The Maharashtra Minister Shambhuraj Desai has indicated that plans for the redevelopment of the area are already in place.

This transfer aligns with the Indian government's ongoing efforts to streamline its portfolio of assets and reduce public sector debt. The Air India building, constructed in 1974 on land owned by the state, will continue to serve as one of Mumbai's prominent architectural landmarks under the stewardship of the Maharashtra government. The transaction will also alleviate the financial burden on AI Assets Holding Company Ltd, reducing the cost to less than half of what would have been the bill for the transaction without the government's concessions.

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