The Maharashtra government has formally acquired the iconic Air India building, a prominent landmark in south Mumbai’s Nariman Point area, 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 built in 1974 on state government-owned reclaimed land, has long been a defining feature of Mumbai’s skyline and is known for once drawing visitors eager to experience its elevators.
Following Air India’s privatisation and acquisition by the Tata Group, its non-core assets, including the Nariman Point property, were transferred to Air India Assets Holding Limited (AIAHL).
The Maharashtra government, facing an acute office space shortage in south Mumbai near Mantralaya, had been in discussions since at least 2021 to acquire the property.
In November 2023, the state cabinet approved the purchase for Rs 1,601 crore and also cleared a waiver of around Rs 298 crore in unrealised income and interest dues owed by AIAHL. The Centre granted final approval for the transfer in March 2024.
The transaction moved closer to completion in April this year when the Finance Department transferred Rs 1,600 crore to the Public Works Department (PWD) to finalise agreements, with the objective of consolidating government offices in the over 45,000 sqm structure and reducing rental expenditure.
PWD Minister Shivendrasinh Bhosale, who was present during the ownership transfer, said the state government has taken possession of the building after acquiring it from AIAHL for Rs 1,601 crore.
At a review meeting held after the handover, Bhosale directed officials to conduct a comprehensive structural audit and undertake necessary repairs before shifting government offices into the premises.
He said interior renovation and development work should begin only after ensuring structural safety.
“All repair and refurbishment work should focus on quality and long-term sustainability,” he stressed, instructing officials to maintain high standards for electrical systems, fittings and technical infrastructure.
The minister added that the building’s main entrance should be redesigned to reflect Maharashtra’s heritage and suggested involving leading architects and expert agencies for the project.
He also directed officials to expedite administrative approvals and ensure timely completion of the renovation work.
“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 were present at the event marking the formal transfer of ownership.