Maharashtra Government has taken over the Air India Building at Nariman Point with Rs 1,600 crore after getting an approval from the central government. This helps the real estate of Mumbai to lay the foundation stone of prominent real estate property.
The government of India has approved the transfer of the ownership of the Air India building from AI Assets Holding Company (AIAHL) Ltd to the Maharashtra government for a consideration of Rs.1,601 crore. The secretary, Department of Investment and Public Asset Management, Tuhin Kanta Pandey said that the Maharastra Govt will waive Rs. 298.42 crore in dues owed by AI Assets Holdings, which was created to handle Air India’s debt and assets following its acquisition by the Tata group in January 2022.
As a part of Air India’s disinvestment, AIAHL was created as a special purpose vehicle for warehousing the accumulated working capital loan not backed by any asset, along with four subsidiaries (Air India Air Transport Services Ltd (AIATSL), Airline Allied Services Ltd (AASL), Air India Engineering Services Ltd (AIESL), and Hotel Corporation of India Ltd (HCI).
As per the disinvestment plan, the government absorbed around Rs. 45,000 crore of the airline’s debt and all non-core assets, which is measured as Rs. 14,718 crore, include about 111 properties such as office buildings and housing colonies, according to a 2021 government statement.
An important decision was also taken that assets, where the rights of the land were with the government departments or state governments, would be sold to the respective entity. The Maharashtra government had given the land for the sea-facing property to Air India in 1970 for a 99-year lease.
Few of the state-run companies, including the Life Insurance Corp. of India and Jawahar Lal Nehru Port Trust, have expressed interest in the 23-storey commercial tower. The state govt. of Maharashtra is very keen about constructing commercial tower by the Arabian Sea, because it has a shortage of space for its departments, and the building may become a part of the government secretariat. The location of the Air India building is also advantageous for the Maharashtra government as it is located in the vicinity of Mantralaya, the state’s administrative headquarters built in 1955.
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