Mumbai’s iconic Air India building will now belong to the Maharashtra government. The central government had approved this decision the day before. This building will be transferred to the Maharashtra government for Rs 1,601 crore.
Air India Disinvestment Happened Two Years Ago
Aviation company Air India has now become a part of Tata Group. Its disinvestment was completed about two years ago. Many Air India assets were not part of the disinvestment deal. They also include the Air India building located at Nariman Point in Mumbai. Now, this building will be in the possession of the Maharashtra government. This building, situated on the seashore, is a famous landmark.
This Company Has Non-Core Assets Of Air India
In fact, under the strategy prepared by the Central Government to disinvest the aviation company Air India, its assets were divided into two parts. One part consisted of core assets, which were disinvested with Air India and went to the Tata Group. The ownership of non-core assets remained with the central government Air India Assets Holding Company. This building was also with Air India Assets Holding Company.
Value Of Non-Core Assets Of Air India
The disinvestment of Air India was completed in the beginning of 2022. Tata Group bought the government aviation company for Rs 18 thousand crores. The Cabinet had approved the disinvestment of Air India in October 2021. At that time, it was told that the value of Air India’s non-core assets, including land and buildings, was Rs 14,718 crore, which would be transferred to Air India Assets Holding Company.
The Historical Building Is 50 Years Old
The Air India building located at Nariman Point is decades old. This 23-storey building was constructed in 1974. The Cabinet of the Maharashtra Government approved the acquisition of this iconic building in November last year. For this, the Maharashtra government will pay Rs 1,601 crore. For the deal, the Maharashtra government has also agreed to waive the dues of Rs 298.42 crore owed by Air India Assets Holding Company.
