The Maharashtra government will get Rs 1,601 crore from the Center on Thursday for the transfer of the Air India facility in Mumbai to Air India Assets Holding firm Limited, a firm established by the Ministry of Civil Aviation in 2018 to manage All India-owned properties.
The Department of Investment and Public Asset Management (DIPAM) reports that the Maharashtra government has decided to forgive DIPAM dues totaling Rs 298.42 crore that AI Assets Holding Company Ltd would have otherwise been required to pay for the transaction.
The announcement was made months after the Maharashtra government chose to pay Rs 1,601 crore to purchase the famous Air India building in Mumbai's Nariman Point. Chief Minister Eknath Shinde presided over a cabinet meeting of the Maharashtra government when the decision was made.
Additionally, it was decided to waive interest on the property at the time and around Rs 250 crore in unrealized income. Air India was granted a 99-year lease on the site in 1970. To expedite the transaction, the cabinet has waived penalties and transfer costs.
The government is anticipated to save about Rs 200 crore in rent annually as a result of this action. The structure, which was built in 1974 on state-owned property, will house offices.
The 23-story structure, which is owned by AI Assets Holding Company Limited, will have around 46,470 square meters suitable for government offices. The building's present tenants, which include tax agencies and government-run businesses, will have to move out.
After an unsatisfactory start in 2018, negotiations were carried out again in 2021. After the Maharashtra government made a last offer of Rs 1,600 crore in 2022, a definitive agreement was achieved.
Jyotiraditya Scindia, the minister of civil aviation, and Deputy Chief Minister Devendra Fadnavis met to talk about the state's request. There were also reports that the Reserve Bank of India expressed interest in buying the building.
According to Fadnavis, the state government required greater room. Debt-ridden Air India attempted to sell the building in 2018, but got only a chilly reception. The distinctive Air India tower, which faces the sea, was constructed in 1974 on property held by the state government of Mumbai.
John Burgee of the Johnson/Burgee architectural company in New York constructed it. Burgee's impact on post-modern architecture was well-known.
