 "Maha govt to buy the Air India building in Mumbai: All you need to know")
The Maharashtra government has decided to acquire the iconic Air India building at Nariman Point in Mumbai for Rs 1,601 crore. The state cabinet, chaired by Chief Minister Eknath Shinde, also waived off around Rs 250 crore unrealised income and interest on the property. Here is everything you need to know about the building, its acquisition, and future plans.
History of the Air India building
The 23-storey building, with an area of approximately 500,000 square feet, was constructed in 1974 and is owned by Air India Assets Holding Limited. The sea-facing Air India tower was designed by architect John Burgee. It holds historical importance as it became the site of one of the targets of the 1993 Mumbai bombings when 20 people were killed in a car bomb blast. The strategic location of the building, just 100 meters from the shore, also adds to its value.
Over the years, the building has hosted various tenants, including Tata Consultancy Services (TCS), State Bank of India, GST, and Income Tax departments.
It was put up for sale in 2018 as part of Air India's asset monetisation plans.
Acquisition and future plans
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Following the acquisition, the government plans to house various departments in the 500,000 square feet of space. This includes departments such as public health, medical education, water supply and sanitation, and rural development, which have been operating from GT Hospital since the fire at Mantralaya in 2012. The acquisition aims to streamline these scattered departments.
The acquisition is also expected to contribute to the real estate dynamics in south Mumbai, which has witnessed declining office rentals, according to a report by MoneyControl. While newer areas like Bandra Kurla Complex (BKC) have gained prominence, the old central business district (CBD) retains its appeal for specific businesses and professionals such as lawyers, chartered accountants, and consultants.
The Air India building is located around many luxury hotels and was reportedly, at one point, the most expensive commercial area in Mumbai. According to MoneyControl, the area, which is also close to BSE, could especially attract businesses in the wealth management sector.