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In a significant development, the Union government has finalized the transfer of ownership of the renowned Air India building in Mumbai to the Maharashtra state government. The transaction, valued at Rs.1,601 crore, marks a pivotal step in the management of state assets.
Furthermore, as part of the agreement, the Maharashtra government has agreed to waive dues amounting to approximately Rs.298.42 crore, which would have been payable by AI Assets Holding Ltd (AIAHL) to the state.
AIAHL, established in 2018 as a special purpose vehicle (SPV), was tasked with managing residual non-core assets of Air India following its sale to the Tata group. The move comes after the successful privatization of the debt-laden carrier, with Tata Sons acquiring ownership in October 2021.
The 23-storey Air India building, constructed in 1974, holds significant commercial value, attracting interest from various entities, including the Jawaharlal Nehru Port Authority (JNPA) and the Life Insurance Corporation (LIC) of India. The Maharashtra government’s revised bid of Rs.1,600 crore secured the acquisition against competing bids, demonstrating strategic intent under the leadership of Chief Minister Eknath Shinde.
With the ownership transfer, the Maharashtra government is poised to utilize the building for its administrative offices, further enhancing its operational infrastructure. The transaction underscores the government’s commitment to optimizing state assets for strategic and economic benefit.
