The Maharashtra government has moved a step closer to acquiring the landmark Air India building in south Mumbai after the Finance Department released Rs 1,600 crore to the Public Works Department (PWD), formally initiating the final stages of the purchase process with Air India Assets Holding Limited.
A senior PWD official confirmed that the draft agreement is currently being reviewed for legal vetting to ensure there are no procedural gaps, and the final signing is expected within the next two weeks.
The Centre had earlier approved the sale of the 23-storey sea-facing structure for Rs 1,601 crore in March 2024, while the state cabinet cleared the acquisition in November 2025. Once the transaction is completed, the government plans to renovate the building and make it operational within a year.
The state intends to relocate several departments currently operating from rented offices into the building, which is located near Mantralaya at Nariman Point. Officials said this will help ease the long-standing space shortage at the state secretariat complex.
Following a fire at Mantralaya in 2012, multiple departments were shifted to different locations across Mumbai, significantly increasing rental expenditure over the years.
The acquisition is expected to provide around 46,470 square metres of office space in proximity to the secretariat, improving administrative coordination and reducing operational costs.
Originally constructed in 1974 on reclaimed land leased to Air India, the building was designed by architect John Burgee and remains a prominent structure in Mumbai’s financial district. The airline decided to monetise the asset in 2018 after shifting its headquarters to New Delhi.
While Air India initially sought about Rs 2,000 crore, the state had first offered Rs 1,400 crore. Other bidders, including Jawaharlal Nehru Port Authority and Life Insurance Corporation of India, also showed interest but at lower valuations.
Negotiations revived after the Eknath Shinde-led government took office, with Maharashtra increasing its offer to Rs 1,601 crore and waiving nearly Rs 300 crore in dues linked to lease income and interest.
Earlier, then deputy chief minister Devendra Fadnavis had also discussed prioritising the state’s bid with the Centre, helping push the proposal forward.
Source: The Times of India
