The Maharashtra government has become the owner of the iconic Air India building with the Union government approving the transfer of the asset on Thursday.

The state government bought the Air India building at Nariman Point in Mumbai for Rs 1,601 crore.

“GoI has approved the transfer of Air India building, Mumbai of AI Assets Holding Company Ltd (AIAHL) to the government of Maharashtra at a consideration of Rs 1,601 crore.

“Maharashtra has agreed to waive dues of Rs 298.42 crore, which would have been otherwise payable by AIAHL for this transaction,” Dipam secretary Tuhin Kanta Pandey said in a post on X.

AIAHL, a government of India company under the administrative control of the ministry of civil aviation, was set up in 2019 to hold non-core assets and debt of Air India.

The non-core assets of Air India, including land and building, valued at Rs 14,718 crore was transferred to AIAHL after it was set up by the government as a precursor to the sale of Air India.

The government had on January 27, 2022, transferred ownership in Air India to
the Tata group, which had
in October 2021 put in a Rs 18,000 crore bid to buy Air India.

Constructed in 1974 on a land owned by the state government, the building will now be used by it as its office space.

Nearly 46,470 square meters of space will be available for government offices in the 23-storey building.