In a significant step toward consolidating government offices, the Government of Maharashtra is nearing the acquisition of the iconic Air India Building after a key fund transfer.
The Finance Department has transferred ₹1,600 crore to the Public Works Department (PWD), initiating the final phase of the deal with Air India Assets Holding Limited. A senior PWD official stated that the draft agreement will be sent for vetting to avoid any gaps and is expected to be signed within the next 2 weeks.
The Centre had approved the sale of the building to the Maharashtra government for ₹1,601 crore in March 2024, followed by state cabinet approval in November 2025.
Once the agreement is executed and ownership is transferred, the government plans to carry out internal renovations and make the 23-storey sea-facing building operational within 1 year. Several departments currently operating from rented spaces are expected to be relocated to the site near Mantralaya in Nariman Point.
The move addresses long-standing space constraints at the secretariat and its annexe. After a major fire at the complex in 2012, multiple departments were shifted across the city, leading to continued rental expenses.
Officials noted that the acquisition will provide approximately 46,470 sq m of office space in close proximity to the state headquarters, helping streamline administrative operations.
The building, constructed in 1974 on reclaimed land leased by the state to Air India, was designed by architect John Burgee and remains a landmark in Mumbai’s financial district.
Air India had decided to monetise the property in 2018 after relocating its headquarters to New Delhi. While the airline initially sought around ₹2,000 crore, the Maharashtra government had offered ₹1,400 crore. Other bidders included Jawaharlal Nehru Port Authority and Life Insurance Corporation of India, both of which quoted lower bids, leading to a stalled process.
Negotiations resumed after the Eknath Shinde-led government took office, with the state eventually raising its offer to ₹1,601 crore and waiving nearly ₹300 crore in dues related to unrealised income and interest on leased land.
In 2022, then deputy chief minister Devendra Fadnavis met then Union civil aviation minister Jyotiraditya Scindia to seek preference for the state government in the sale process.
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