1. Home
  2. Infrastructure Transport
  3. AVIATION & AIRPORTS
  4. Maharashtra govt in talks to buy Air India building in Mumbai
Maharashtra govt in talks to buy Air India building in Mumbai
AVIATION & AIRPORTS

Maharashtra govt in talks to buy Air India building in Mumbai

12 Aug 2021 2 Min Read CW Team
The Maharashtra government has initiated discussions with debt-ridden Air India to buy its iconic building located in the Nariman Point area of the city.

Maharashtra Chief Secretary Sitaram Kunte discussed the cost of the building with Air India CMD Rajiv Bansal.

Air India had issued tenders for 23-storey building sales, which stands on the state government land, in 2018, but it failed to evoke a favorable response.

Officials of Air India told Kunte that their internal valuation of the building was more than Rs 2,000 crore, to which Kunte asked them to share it with the state government, official sources said.

An official told the media that the Air India building has become old. A private party will have to demolish the whole building. The building can be used for another eight to ten years to accommodate some government offices. The building value cannot be more than Rs 2,000 crore. Its actual value would only be the strategic location and the land value.

The former chief minister Devendra Fadnavis had shown interest in buying the building to house several government offices given its proximity to the state legislature building and the secretariat overseeing the Marine Drive.

The official said that Air India approached the then-state government and asked for its participation in the tender. The government wrote to Air India quoting a value of Rs 1,450 crore for the acquisition. Since the government dues from Air India are about Rs 300 crore, the actual cost would have been nearly Rs 1,100 crore to Rs 1,200 crore.

Image Source

Also read: Air India sold 115 properties at Rs 738 cr since 2015 to offset debt

Also read: Air India property auction begins; company targets to raise Rs 270 cr

The Maharashtra government has initiated discussions with debt-ridden Air India to buy its iconic building located in the Nariman Point area of the city. Maharashtra Chief Secretary Sitaram Kunte discussed the cost of the building with Air India CMD Rajiv Bansal. Air India had issued tenders for 23-storey building sales, which stands on the state government land, in 2018, but it failed to evoke a favorable response. Officials of Air India told Kunte that their internal valuation of the building was more than Rs 2,000 crore, to which Kunte asked them to share it with the state government, official sources said. An official told the media that the Air India building has become old. A private party will have to demolish the whole building. The building can be used for another eight to ten years to accommodate some government offices. The building value cannot be more than Rs 2,000 crore. Its actual value would only be the strategic location and the land value. The former chief minister Devendra Fadnavis had shown interest in buying the building to house several government offices given its proximity to the state legislature building and the secretariat overseeing the Marine Drive. The official said that Air India approached the then-state government and asked for its participation in the tender. The government wrote to Air India quoting a value of Rs 1,450 crore for the acquisition. Since the government dues from Air India are about Rs 300 crore, the actual cost would have been nearly Rs 1,100 crore to Rs 1,200 crore. Image Source Also read: Air India sold 115 properties at Rs 738 cr since 2015 to offset debt Also read: Air India property auction begins; company targets to raise Rs 270 cr

Next Story
Infrastructure Urban
27 Nov 2024

bauma Conexpo 2024 is it the largest edition, with 1,000 exhibitors

India's construction equipment industry is experiencing significant growth, fueled by rapid infrastructure development, expanding mining activities, and increasing urbanisation. bauma Conexpo India will bring together leaders, global players and decision-makers from the international trade fair for construction machinery, building material machines, mining machines and construction vehicles under one roof. The exhibition will host its biannual event at the India Expo Centre, Greater Noida  from 11 to 14 December 2024.In 2023, the exhibition attracted 41,108 participants as well as 601 exh..

Read More
Next Story
Infrastructure Urban
27 Nov 2024

Our commitment to excellence and innovation drives our success

In India's dynamic industrial landscape, Gmmco, a comprehensive solutions provider across the construction, resources and energy transportation industries, stands as a testament to innovation. As a powerhouse of the CK Birla Group with a legacy spanning over five decades, the company has evolved from a traditional equipment supplier to a full-spectrum solutions provider, prioritising technology, innovation and sustainability. Its distinctive approach includes rental solutions, used equipment options, financing support, rebuilt options and tailored product support solutions, setting new benchma..

Read More
Next Story
Infrastructure Urban
27 Nov 2024

Vedanta plans $2 billion investment in Saudi Arabia copper projects

Vedanta announced its plan to invest $2 billion in major copper projects in Saudi Arabia. Vedanta Copper International, a wholly-owned subsidiary of the company, has signed an agreement with Saudi Arabia's Ministry of Investment and Ministry of Industries & Mineral Resources. The agreement outlines the establishment of a greenfield copper smelter and refinery with a capacity of 400 kilo tonnes per annum (KTPA) and a 300 KTPA copper rod project. According to the company, this collaboration aligns with Saudi Arabia's Vision 2030 and aims to invest $2 billion in significant copper projects withi..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

bauma Conexpo 2024 is it the largest edition, with 1,000 exhibitors
ECONOMY & POLICY
27 Nov 2024

bauma Conexpo 2024 is it the largest edition, with 1,000 exhibitors

Our commitment to excellence and innovation drives our success
ECONOMY & POLICY
27 Nov 2024

Our commitment to excellence and innovation drives our success

Vedanta plans $2 billion investment in Saudi Arabia copper projects
ECONOMY & POLICY
27 Nov 2024

Vedanta plans $2 billion investment in Saudi Arabia copper projects

Bengaluru approves Rs 6.94-billion plan to repair 390 km of roads
ROADS & HIGHWAYS
27 Nov 2024

Bengaluru approves Rs 6.94-billion plan to repair 390 km of roads

Rs17.50 bn Tato-I Hydro Project Approved to Boost Arunachal's Power
POWER & RENEWABLE ENERGY
27 Nov 2024

Rs17.50 bn Tato-I Hydro Project Approved to Boost Arunachal's Power

Noida Authority lodges EOW complaint against Logix Developers
Real Estate
27 Nov 2024

Noida Authority lodges EOW complaint against Logix Developers

State Street leases Brookfield office tower in Mumbai for GCC setup
ECONOMY & POLICY
27 Nov 2024

State Street leases Brookfield office tower in Mumbai for GCC setup

Odisha to Amend Real Estate Laws for Easier Sale Deed Registration
Real Estate
27 Nov 2024

Odisha to Amend Real Estate Laws for Easier Sale Deed Registration

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000