The Maharashtra government and Air India Assets Holding Limited (AIAHL) are preparing to sign the formal agreement for the transfer of the iconic Air India building at Nariman Point in Mumbai within the next week. The state government had initiated the purchase of the building for Rs 1,600 crore nearly two-and-a-half years ago, and the Finance Department has now transferred the necessary funds to the Public Works Department (PWD) to facilitate the final handover. The 23-storey building, offering 46,470 square meters of prime office space, will accommodate various state government offices currently housed in rented premises.
Following the agreement, internal renovations are anticipated to take about a year before the building is fully operational. In November 2023, the Maharashtra Cabinet approved the building’s purchase, and in March 2024, the Union government granted the final approval for the asset transfer from AIAHL to the state. As part of the Cabinet decision, the state government forgave approximately Rs 298.42 crore in outstanding dues owed by AIAHL. The relocation of departments from private rentals to this building is projected to save the state around Rs 200 crore annually in rent.
Presently, nine floors of the building are unoccupied, while other floors house departments like GST and Income Tax, which are expected to vacate to make room for state ministerial offices and departments currently scattered across South Mumbai. AIAHL, established in 2019 under the Ministry of Civil Aviation, oversees Air India’s non-core assets and debt. The building, designed by John Burgee of the architectural firm Johnson/Burgee, has been a prominent feature of the Mumbai skyline since its construction in 1974.
