Daijiworld Media Network – Mumbai

Mumbai, Jun 3: The Maharashtra government has acquired Mumbai's iconic Air India Building at Nariman Point for Rs 1,601 crore, a move aimed at creating additional office space for state departments and strengthening administrative infrastructure in the city.

The transfer agreement was signed between the state government and Air India Assets Holding Limited (AIAHL), formally completing the acquisition process initiated after the privatisation of Air India.

The 23-storey building, which served as the national carrier's headquarters for several decades, is among the most prominent landmarks in South Mumbai and occupies a prime location overlooking the Arabian Sea.

Officials said the purchase is expected to help address the growing demand for office space among government departments while reducing expenditure incurred on rented premises. The building's close proximity to Mantralaya is also expected to improve coordination among various departments and streamline administrative functioning.

The state government had earlier approved the acquisition, with the required funds allocated through the Finance Department to facilitate the purchase.

Following the takeover, authorities will undertake a comprehensive structural audit of the property before government offices are shifted to the premises.

Officials from the Public Works Department said renovation and modernisation works will be carried out to ensure the building complies with current safety, operational and infrastructure standards. Plans are also being explored to incorporate elements reflecting Maharashtra's cultural heritage into the building's design.

The acquisition is regarded as one of the largest property purchases made by the Maharashtra government in recent years and is expected to play a key role in expanding the state's administrative capacity in Mumbai.