Maharashtra government to buy Air India's building for Rs 1,600 crore
Real Estate

Maharashtra government to buy Air India's building for Rs 1,600 crore

Deputy chief minister Devendra Fadnavis had met Union civil aviation minister Jyotiraditya Scindia last year and urged him to give preference to the Maharashtra government in its attempt to sell the iconic Air India building at Nariman Point. Besides the state, the Reserve Bank of India (RBI) was said to be in the fray for the building.

The senior minister confirming a likely deal said: “We have been told that the AI Assets Holding, which owns the building, has in-principle agreed to give it to us. Finer details will be worked out but our offer is conditional. We were told offices of GST and the incometax department run out of there. Some floors are with the state-owned company and one of the floors houses art collections and other items. We will only go ahead with the deal if we get vacant possession, we don’t want to appoint a new agency to get the premises vacated, it will be very tedious. ”

Justifying the government’s push to acquire the property, the minister said: “If we get the building, we can save the rent the state government is paying right now. Several state offices are housed in private spaces across south Mumbai and is costing a huge sum every month.”

Ministerial offices can be shifted to the Air India building and all offices currently in private buildings can be accommodated in Mantralaya, said a senior official. “There are some plans to connect Mantralaya and the Air India building, but it is still at a discussion stage.”

AI officials had told thestate government that according to them, the valuation of the building was more than Rs 2,000 crore. “The government needs to recover dues from Air India to the tune of around Rs 300 crore,” pointed out the state official. After Fadnavis started talks for the building during his chief ministership, talks had resumed in 2021 under the MVA government, but no deal was finalised, added the official.

Also Read
80ft Master Plan road for Rs 63 mn giving relief to Tirupati residents
MoRTH to establish credit rating metric for private construction firms

Deputy chief minister Devendra Fadnavis had met Union civil aviation minister Jyotiraditya Scindia last year and urged him to give preference to the Maharashtra government in its attempt to sell the iconic Air India building at Nariman Point. Besides the state, the Reserve Bank of India (RBI) was said to be in the fray for the building. The senior minister confirming a likely deal said: “We have been told that the AI Assets Holding, which owns the building, has in-principle agreed to give it to us. Finer details will be worked out but our offer is conditional. We were told offices of GST and the incometax department run out of there. Some floors are with the state-owned company and one of the floors houses art collections and other items. We will only go ahead with the deal if we get vacant possession, we don’t want to appoint a new agency to get the premises vacated, it will be very tedious. ” Justifying the government’s push to acquire the property, the minister said: “If we get the building, we can save the rent the state government is paying right now. Several state offices are housed in private spaces across south Mumbai and is costing a huge sum every month.” Ministerial offices can be shifted to the Air India building and all offices currently in private buildings can be accommodated in Mantralaya, said a senior official. “There are some plans to connect Mantralaya and the Air India building, but it is still at a discussion stage.” AI officials had told thestate government that according to them, the valuation of the building was more than Rs 2,000 crore. “The government needs to recover dues from Air India to the tune of around Rs 300 crore,” pointed out the state official. After Fadnavis started talks for the building during his chief ministership, talks had resumed in 2021 under the MVA government, but no deal was finalised, added the official. Also Read 80ft Master Plan road for Rs 63 mn giving relief to Tirupati residents MoRTH to establish credit rating metric for private construction firms

Next Story
Real Estate

The Only Way is Up!

In 2025, India’s real-estate market will be driven by a confluence of economic, demographic and policy-driven factors. Among these, Boman Irani, President, CREDAI National, counts rapid urbanisation, the rise of the middle class, policy reforms like RERA and GST rationalisation, and the Government’s decision to allow 100 per cent FDI in construction development projects (including townships, housing, built-up infrastructure, and real-estate broking services).In the top metros, especially Bengaluru, followed by Hyderabad and Pune, the key drivers will continue to be job creation a..

Next Story
Building Material

Organisations valuing gender diversity achieve higher profitability

The building materials industry is projected to grow by 8-12 per cent over the next five years. How is Aparna Enterprises positioning itself to leverage this momentum and solidify its market presence?The Indian construction and building materials industry is projected to witness significant expansion, with estimates suggesting an 8-12 per cent compound annual growth rate (CAGR) over the next five years. This growth is fuelled by rapid urbanisation, increased infrastructure investments and sustainability-focused policies. With India's real-estate market expected to reach $ 1 trillion by 2030, t..

Next Story
Real Estate

Dealing with Delays

Delays have beleaguered many a construction project in India, hampering the country from building to its ability and potential, and leading to additional costs incurred by the contractor. The reasons for delayIn India, delays mainly occur owing to obtaining statutory approvals, non-provisioning of right of way, utility diversion and approval of drawings and design. Delays are broadly classified based on responsibility and effect. Excusable delays arise from factors beyond the contractor’s control, such as force majeure events or employer-induced delays. These delays generally entitle th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?