November 10, 2023: In a significant move, the Maharashtra government has given the green light for the acquisition of the iconic Air India building located at Nariman Point in South Mumbai. The transaction, valued at Rs 1,601 crore, marks a crucial step in the state’s strategic real estate portfolio expansion.
The 23-storey structure, currently under the ownership of Air India Assets Holding Ltd—an entity established by the Union Ministry of Civil Aviation in 2018 to oversee all Air India properties—stands as a landmark in Mumbai’s skyline. The state government’s decision to acquire this prominent building opens avenues for potential relocations and optimizations in administrative functions.
Sources suggest that ministerial offices might find a new home in the Air India building, potentially streamlining government operations. However, some departments may continue operating from the Mantralaya, the state government’s administrative center.
The move has particular significance for departments that were relocated to GT Hospital in 2012 following a fire at the state secretariat. Departments such as public health, medical education, water supply and sanitation, and rural development now have the opportunity to shift to Nariman Point, enhancing operational efficiency.
Constructed in 1974 on state-owned land, the building, designed by John Burgee of the New York-based architectural firm Johnson/Burgee, suffered a tragic event in 1993 during the serial bomb blasts in Mumbai. The incident claimed 20 lives and resulted in significant damage, particularly to the offices of the Bank of Oman located above the basement garage where a car bomb exploded.
Presently, nine floors of the Air India building remain unoccupied. GST offices occupy three floors, and the income-tax department operates from eight floors. The state government has formally requested Air India Assets Holding Company to transfer the building without any encumbrances, signaling a new chapter in its utilization.
Despite being listed for sale in 2018 as part of Air India’s asset monetization plans, the building did not attract significant interest. To facilitate the acquisition, the state government, led by Eknath Shinde, increased their bid to Rs 1,600 crore, demonstrating the importance of this strategic acquisition in the heart of Mumbai.
