Maharashtra: Maharashtra books Air India Building for 1,601 crore to put seats for govt staff | India News

MUMBAI: The Maharashtra cupboard on Wednesday cleared the plan to purchase the long-lasting, sea-facing Air India Constructing in Nariman Level to accommodate authorities workplaces. As a part of the deal, the state pays Rs 1,601 crore to Air India Belongings Holding Ltd, which was shaped by the Centre and vested with a number of AI-owned properties earlier than promoting the airline.
The acquisition makes obtainable 46,470 sq m of house throughout the 23-storey tower, thought of certainly one of Mumbai’s landmarks.Officers mentioned the federal government will save round Rs 200 crore in annual lease if all workplaces housed in personal properties are moved to the Air India Constructing.
As soon as occupied by Tata Consultancy Companies and different personal corporations other than the airline itself, the tower presently homes workplaces of tax departments below the ministry of finance other than some government-run undertakings. The present occupants must vacate the property. The construction which has the image of a centaur on its roof was designed by American architect John Bugee and accomplished in 1974.
The land on which the constructing stands is on a 99-year lease given to Air India in 1970. The cupboard has determined to waive switch charges—
amounting to about one-eighth of the market worth—to be paid by the lease-holder and a few penalties in order that the deal may be expedited and the state can take possession of the constructing quickly. “Air India had sought a waiver of this cost as a particular case, which has been accredited,” an official mentioned.
When negotiations first started in 2018, Air India officers had knowledgeable the Maharashtra authorities that the constructing was valued at greater than Rs 2,000 crore. “The state quoted a value of Rs 1,450 crore, but it surely supplied Rs 1,100-1,200 crore as a result of the federal government needed to get better dues from Air India of round Rs 300 crore. Talks didn’t make headway then. They resumed in 2021 below the MVA however no deal was finalised. In 2022, Maharashtra made a ultimate provide of Rs 1,600 crore which was agreed to by AI Belongings Holdings Ltd,” the official mentioned.
In 2022 deputy chief minister Devendra Fadnavis met civil aviation minister Jyotiraditya Scindia and urged him to contemplate the state’s bid favourably. Other than Maharashtra authorities, the Reserve Financial institution of India was mentioned to be within the fray to purchase the constructing.
Fadnavis had mentioned the state administration was going through an area crunch and wanted to seek out house along with Mantralaya and its annexe to convey all workplaces below one roof. “We gave this proposal after I was Chief Minister…that was withdrawn. After that we corresponded once more. At the moment, each Reserve Financial institution and Maharashtra authorities have demanded this house,” he had mentioned in a tweet.
Debt-ridden Air India had additionally floated tenders for the sale of the 23-storey constructing in 2018, but it surely didn’t evoke a superb response.

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