Centre approves transfer of Air India Bhawan to Maharashtra government for Rs 1,601 crore

New Delhi [India], March 14 (ANI): The Centre on Thursday approved the transfer of the Air India building in Mumbai from AI Assets Holding Company Ltd to the Maharashtra government for a sum of Rs 1,601 crore.

As part of the agreement, the Maharashtra government has decided to forgo Department of Investment and Public Asset Management (DIPAM) dues amounting to Rs 298.42 crore that would have been owed by AI Assets Holding Company Ltd, as confirmed by the DIPAM.

“GoI has approved transfer of Air India building, Mumbai of AI Assets Holding Company Ltd to Government of Maharashtra (GoM) at consideration of Rs 1601 cr. GoM has agreed to waive dues of Rs. 298.42 cr, which would have been otherwise payable by AIAHL to GoM for this transaction,” DIPAM said in a post on X.

Earlier, AI Assets Holdings Ltd, a state-owned entity established to oversee Air India's debt and assets following its acquisition by the Tata Group in January 2022, declined a prior offer from the Maharashtra government for office accommodations within the Air India building.

Acquiring the Air India building holds significant strategic value for Maharashtra, especially considering its proximity to 'Mantralaya', the state government's administrative headquarters established in 1955.

Under the Air India divestment plan, the government assumed the airline's debt of approximately Rs 45,000 crore along with all non-core assets, which encompassed around 111 properties, including office buildings and housing colonies.

These assets were estimated to have a total value of Rs 14,718 crore, as outlined in a government statement released in 2021.

Maharashtra Minister Shambhuraj Desai, reacting to Air India Building takeover approved by central government, said his government already had a plan in place for the redevelopment of this whole area.

"The finance department under the leadership of Deputy CM Ajit Dada Pawar is already planning to redevelop the area through an international planning agency. Govt of India has also approved the transfer of the Air India Building to Maharashtra Govt. First of All structural audit of the Air India building will be done and then the future course of Action will be decided if the structure is intact then the CM, Deputy CMs etc., will take the final decision on it. In any case, this whole area's redevelopment plan is already in action," the Maharashtra minister said. (ANI)