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The Central government has granted approval for the transfer of the Air India building in Mumbai to the Maharashtra government for Rs 1,601 crore. The state government also agreed to waive dues of Rs 298.42 crore, which would have been otherwise payable by AI Assets Holding (AIAHL) to GoM for this transaction.
The 23-storey building has 46,470 sq. mtrs. of space, which was constructed in 1974 on land owned by the Maharashtra government, and has auditorium and cafeteria, among other facilities. The new owner is expected to use the building to house its offices.
AIAHL is the special purpose vehicle (SPV), which was incorporated in 2018, to own and manage residual non-core assets, including paintings and artefacts of Air India, which was subsequently sold to the Tata Group. The government had accepted Tata Sons’ bid for its flagship carrier for Rs 18,000 crore in October 2021.
While Tata Group took over Air India in January 2022, the airline’s non-core assets, including land and buildings, were transferred to AIAHL. The non-core assets valued at Rs 14,718 crore were transferred to AIAHL after it was set up in 2019 by the government as a precursor to the sale of Air India for holding the debt and non-core assets of the then national carrier. |
