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Maharashtra govt moves closer to seal Air India building buyout after ₹1,600 cr fund transfer
The Maharashtra government advanced its plan to acquire Air India's south Mumbai building after a ₹1,600 crore transfer to the Public Works Department, with a draft agreement to be vetted and a signing expected soon. Earlier milestones include Centre approval in 2024 and cabinet clearance in 2025, along with background on the asset and past shifts in office space.
Why It Matters
The acquisition would add about 46,470 square metres of central office space near the state secretariat, potentially reducing rental costs and consolidating government operations at a landmark site in Nariman Point.
Timeline
9 Events
Post-signing renovations and occupancy plan
April 28, 2026
Once the agreement is signed and the property is transferred, the state government will undertake internal renovations and make the 23-storey sea-facing building operational within a year, relocating several offices from rented premises to the Nariman Point site near Mantralaya.
Draft agreement to be vetted; signing expected soon
April 28, 2026
The draft agreement would be sent for vetting to avoid lacunae and is likely to be signed within the next two weeks.
₹1,600 crore transferred to PWD to move process forward
April 28, 2026
The Finance Department transferred ₹1,600 crore to the Public Works Department, setting in motion the process to finalise the agreement with Air India Assets Holding Limited.
State cabinet clears acquisition
November 2025
The state cabinet cleared the acquisition in November 2025.
Centre approves sale to Maharashtra for ₹1,601 crore
March 2024
The Centre approved the sale of the building to the Maharashtra government for ₹1,601 crore.
2022 meeting on sale preference
2022
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.
Air India monetised asset after HQ shift
2018
Air India decided to monetise the asset in 2018 after shifting its headquarters to New Delhi.
Secretariat fire triggers shifts to rented offices
2012
A major fire at the secretariat complex in 2012 led several departments to shift to different parts of the city, resulting in continued expenditure on rented offices.
Air India building background: constructed.
1974
The Air India building, a 23-storey sea-facing landmark in south Mumbai near Nariman Point, was constructed in 1974 on reclaimed land leased by the state government to Air India.