Air India had earlier turned down an offer from the Maharashtra government to lease office space in the Air India building.
New Delhi: 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.
Highlights Of The Air-India Deal
As per the reports of ANI, the Government of Maharashtra (GoM) has been granted permission to purchase the Air India building in Mumbai from AI Assets Holding Company Ltd. for a total of Rs. 1601 crore. For this deal, GoM has consented to waive dues of Rs. 298.42 cr that AIAHL would have otherwise had to pay to GoM.
Prior to its sale by the Tata Group in January 2022, Air India’s debt and assets were overseen by a state-owned organization called AI Assets Holdings Ltd. This organization turned down an earlier offer from the Maharashtra government to lease office space in the Air India building.
What Is Air India Divestment Plan?
For Maharashtra, acquiring the Air India building is strategically significant, especially in light of its close proximity to ‘Mantralaya,’ the administrative seat of the state government that was founded in 1955.
As part of the Air India divestment plan, all 111 properties, including office buildings and housing colonies, were acquired by the government, together with the airline’s approximately Rs 45,000 crore in debt.
A 2021 government statement stated that the projected total worth of these assets was Rs 14,718 crore.
Will Maharashtra Reconstruct Air India Building?
In response to the national government’s approval of the takeover of the Air India Building, Maharashtra Minister Shambhuraj Desai stated that his government already has a plan in place for the reconstruction of this entire region.
“Deputy Chief Minister Ajit Pawar’s finance department is already preparing to reconstruct the region with the help of an international planning organization. The Air India Building’s handover to the Maharashtra government has also been approved by the Indian government. The Air India building will first undergo a structural audit, after which the best course of action will be determined whether the structure is sound. The CM, Deputy CMs, etc., will make the final decision in this regard. Regardless, the reconstruction plan for this entire area has already begun,” said Shambhuraj Desai.
(With inputs from ANI)
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