The Union government has approved the transfer of the Air India building in Mumbai from AI Assets Holding Company Ltd to the Maharashtra government in exchange for a large payment of Rs 1,601 crore.

Under the terms of the deal, the Maharashtra government has agreed to discharge dues of Rs 298.42 crore owed by AI Assets Holding Company Ltd to the state government. The Department of Investment and Public Asset Management (DIPAM) has confirmed the arrangement, reported ANI. 

According to a report by news agency ANI, the Secretary of DIPAM Tuhin Kanta Pandey, in a social media post said that the Government of India had approved the transfer. 

The tweet read, “GoI has approved the transfer of Air India building, Mumbai of AI Assets Holding Company Ltd to Government of Maharashtra (GoM) at the 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.”

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

— Secretary, DIPAM (@SecyDIPAM) March 14, 2024

Previously, AI Assets Holdings Ltd, a state-owned organisation that manages Air India`s debt and assets following its acquisition by the Tata Group in January 2022, turned down an earlier offer from the Maharashtra government for office space in the Air India building, stated the ANI report. The acquisition of the Air India building is strategically important for Maharashtra, especially given its proximity to `Mantralaya`, the state government`s administrative headquarters constructed in 1955, it further added. 

The ANI report further stated, that as part of the Air India divestment plan, the government absorbed the airline`s debt of approximately Rs 45,000 crore along with all non-core assets, including around 111 properties like office buildings and housing colonies. These assets were estimated to have a collective value of Rs 14,718 crore, according to a government statement released in 2021.

Meanwhile, another report in PTI, stated that the building, which was constructed in 1974 on state government-owned land and is nearly 46, 470 square meters, will be used as office space by the government. The report stated that since the 2012 fire in Mantralaya, four major departments–public health, medical education, water supply & sanitation and rural development–have been operating from GT Hospital. It further added that these departments along with som others will likely be moved to the Air India building. 

With agency inputs

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