The transfer of agreements between Air India Assets Holding Company and the state Public Works Department (PWD) was finalized in the presence of Chief Minister Devendra Fadnavis in the Cabinet Hall at ’Mantralaya’ following a cabinet meeting, as noted in an official release.
Attending the event were 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, along with Air India officials including its commercial officer.
The historic Air India building, a 23-storey commercial tower facing the sea at Nariman Point in south Mumbai built in 1974 on reclaimed state land, has long been a key city landmark, attracting crowds in its early years for unique experiences such as its elevators.
After Air India’s privatization and its purchase by the Tata Group, its non-core assets—including this building—were assigned to Air India Assets Holding Limited (AIAHL).
The Maharashtra government, grappling with a shortage of office space in prime areas of South Mumbai close to Mantralaya, has been negotiating the acquisition of this property since at least 2021.
In November 2023, the state cabinet approved the purchase for ₹1,601 crore and opted to waive approximately ₹298 crore in unrealized income and interest dues owed by AIAHL. The Centre granted final approval for the transfer in March 2024.
The deal progressed toward completion in April of this year when the Finance Department allocated ₹1,600 crore to the Public Works Department (PWD) for the finalization of agreements, aiming to centralize government offices in the over 45,000 sqm building and reduce rental costs.
PWD Minister Shivendrasinh Bhosale stated that the state government took ownership of the building after acquiring it from AIAHL for ₹1,601 crore.
During a review meeting held post-handover, Minister Bhosale instructed officials to perform a thorough structural audit and complete necessary repairs before relocating government offices to the site.
He emphasized that interior renovations and additional development work should commence only once structural safety issues are resolved.
All repair and refurbishment activities must prioritize quality and long-term sustainability, he stressed, instructing officials to uphold high standards for electrical systems, fittings, and other technical infrastructures.
The minister also suggested redesigning the building’s main entrance to reflect Maharashtra’s cultural heritage and recommended involving prominent architects and specialized agencies in the project.
He urged officials to hasten the administrative approvals necessary for the renovation and to ensure the project’s timely completion.
“The transfer of the Air India building to the Maharashtra government is a significant step in enhancing the state’s administrative framework. The building will serve as a model government complex, emphasizing quality, sustainability, and convenience for citizens,” he noted.
