Maharashtra govt in talks to buy Air India building in Mumbai
12 Aug 2021
2 Min Read
CW Team
The Maharashtra government has initiated discussions with debt-ridden Air India to buy its iconic building located in the Nariman Point area of the city.
Maharashtra Chief Secretary Sitaram Kunte discussed the cost of the building with Air India CMD Rajiv Bansal.
Air India had issued tenders for 23-storey building sales, which stands on the state government land, in 2018, but it failed to evoke a favorable response.
Officials of Air India told Kunte that their internal valuation of the building was more than Rs 2,000 crore, to which Kunte asked them to share it with the state government, official sources said.
An official told the media that the Air India building has become old. A private party will have to demolish the whole building. The building can be used for another eight to ten years to accommodate some government offices. The building value cannot be more than Rs 2,000 crore. Its actual value would only be the strategic location and the land value.
The former chief minister Devendra Fadnavis had shown interest in buying the building to house several government offices given its proximity to the state legislature building and the secretariat overseeing the Marine Drive.
The official said that Air India approached the then-state government and asked for its participation in the tender. The government wrote to Air India quoting a value of Rs 1,450 crore for the acquisition. Since the government dues from Air India are about Rs 300 crore, the actual cost would have been nearly Rs 1,100 crore to Rs 1,200 crore.
Also read: Air India sold 115 properties at Rs 738 cr since 2015 to offset debt
Also read: Air India property auction begins; company targets to raise Rs 270 cr
The Maharashtra government has initiated discussions with debt-ridden Air India to buy its iconic building located in the Nariman Point area of the city.
Maharashtra Chief Secretary Sitaram Kunte discussed the cost of the building with Air India CMD Rajiv Bansal.
Air India had issued tenders for 23-storey building sales, which stands on the state government land, in 2018, but it failed to evoke a favorable response.
Officials of Air India told Kunte that their internal valuation of the building was more than Rs 2,000 crore, to which Kunte asked them to share it with the state government, official sources said.
An official told the media that the Air India building has become old. A private party will have to demolish the whole building. The building can be used for another eight to ten years to accommodate some government offices. The building value cannot be more than Rs 2,000 crore. Its actual value would only be the strategic location and the land value.
The former chief minister Devendra Fadnavis had shown interest in buying the building to house several government offices given its proximity to the state legislature building and the secretariat overseeing the Marine Drive.
The official said that Air India approached the then-state government and asked for its participation in the tender. The government wrote to Air India quoting a value of Rs 1,450 crore for the acquisition. Since the government dues from Air India are about Rs 300 crore, the actual cost would have been nearly Rs 1,100 crore to Rs 1,200 crore.
Image Source
Also read: Air India sold 115 properties at Rs 738 cr since 2015 to offset debt
Also read: Air India property auction begins; company targets to raise Rs 270 cr
Next Story
Kolkata鈥檚 luxury housing market sees price growth amid mixed trends
A new study by Nklusive reveals that Kolkata鈥檚 luxury residential market (Rs 5鈥�10 crore) recorded a 33 per cent year-on-year rise in supply and a 52 per cent increase in sales in calendar year 2024 (CY24). South Kolkata led with 78 per cent of the segment鈥檚 supply. The average price rose by 6 per cent鈥攆rom Rs 17,519 to Rs 18,600 per sq ft鈥攚hile unsold inventory grew by 15 per cent. Monthly absorption improved from 2 to 3 units.In contrast, the ultra-luxury segment (Rs 10 crore and above) experienced a 17 per cent decline in supply and a 30 per cent fall in sales. Central Kolkata acco..
Next Story
New Expressway to Cut Pune-Bengaluru Travel Time by Half
The upcoming Pune-Bengaluru Expressway is expected to significantly improve connectivity and economic opportunities across Maharashtra and Karnataka. This 700-kilometre greenfield, access-controlled highway will cut the travel time between Pune and Bengaluru from 15 hours to just 7 hours, facilitating easier movement for both commuters and businesses. Starting from Bommanal in Karnataka鈥檚 Athani Taluk, the expressway will traverse important districts such as Belagavi, Bagalkot, and Jamakhandi. It will then enter Maharashtra at Kanjle, connect with the proposed Pune Ring Road, and pass throug..
Next Story
Nagpur鈥檚 Koradi Naka to Get Y-Shaped Flyover for Safer, Smoother Traffic
To alleviate traffic congestion and enhance safety at Koradi Naka in Nagpur, a Y-shaped flyover is currently being constructed on National Highway 47. Demolition work has already commenced, with the main construction scheduled to start on June 20, 2025.The project, costing Rs 430.37 billion, involves building a 1,090-meter-long flyover that will connect Farsa, the Mahadula Railway Overbridge (ROB), and Bokhara Road, and will also feature an underpass. The existing structure will be repurposed into a service road to facilitate local traffic.Koradi Naka has been identified as a significant "blac..
