Maharashtra Govt Buys Tata Group-Owned Air India's Iconic Building For Rs 1,601 Crore
Nearly 50 years after it was built, Tata group-owned Air India¡¯s iconic building has now been sold?to the Maharashtra government, for Rs 1,601 crore. The building is situated at Nariman Point in Mumbai.
Air India's Iconic Building Sold For Rs 1,601 Crore
The Department of Investment and Public Asset Management (Dipam) secretary Tuhin Kanta Pandey announced in a post on X (formerly Twitter) that the Maharashtra government has decided to waive dues of Rs 298.42 crore payable by AI Assets Holding Company (AIAHL) to the state for this transaction. The non-core assets that were not included in the government's strategic sale of Air India to the Tata group for ?18,000 crore, which was completed in early 2022, are held by the state-run AIAHL, a special purpose vehicle (SPV), as per ET report.?
An official statement had stated that AIAHL would receive Air India's non-core assets, which included land and buildings valued at ?14,718 crore, following the cabinet's approval of the carrier's sale in October 2021. Air India's debt was initially held by the SPV as well, but the government eventually paid it back.?
The Iconic Building Was Constructed In 1974
The acquisition of the 23-story Air India building, constructed in 1974 on state-owned land, was approved by the Maharashtra cabinet in November 2023. The state government would occupy approximately 46,470 square meters of the building for office purposes, according to earlier statements from officials.?
Tata Group Had Taken Over Air India In 2022 For Rs 18,000 Crore
Earlier, the Tata group had successfully acquired a 50% share in the joint venture Air India SATS (airport ground services and cargo handling) and a 100% stake in Air India and its subsidiary Air India Express (a low-cost carrier airline that focuses on short-haul international operations, especially in West Asia) in 2022, for a cost of Rs 18,000 crore.
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