Mumbai, May 7
The Maharashtra government is all set to buy the sea-facing Air India building at Mumbai’s Nariman Point from the cash strapped airline.
Chief Secretary UPS Madan told reporters here today that the state government has emerged as the highest bidder by offering Rs 1,400 crore for the property.
He added that the building stood on land leased by the state government and the Maharashtra government was looking to shift several of its departments once the building comes in its possession.
At present, there is a secretariat annexe building which is part of the Mantralaya complex next door to the Air India building. Several offices which are located at other buildings in Nariman Point would be moved to the building which used to house Air India’s headquarters in the past, according to the state goverment.
Air India was in occupation of the property on a 99-year lease from 1970 onwards when the building was constructed, according to state government officials here.
The Maharashtra government was the highest bidder offering Rs 1,400 crore for the building. Other bidders included the Jawaharlal Nehru Port Trust and the Life Insurance Corporation.
The Devendra Fadnavis government wants to take possession of the building in around six weeks from Air India and will need to get tenants in some of the floors to vacate apart from its own office space. The state government wants the airline to pay rent for the booking office in the building.
The Union Civil Aviation ministry wants the building to retain its name and logo. “The ministry wants Air India’s logo to remain on the building’s roof as well,” a state government official said.
The Maharashtra government is likely to agree to the proposal since the Air India building and the hoarding advertising the airline outside the building draws scores of tourists every day, according to officials.
