Maharashtra government to buy Air India building?

The issue of privatization of Air India, which is in dire financial crisis, is currently on the agenda. However, due to covid the privatization process has been delayed. It is learned that due to financial constraints, Air India has decided to reduce the facilities provided to its employees. It is also said to have sold several properties. It is being said that the Thackeray government has resumed discussions on the purchase of the iconic Air India building at Nariman Point in Mumbai.

Chief Secretary of Maharashtra S. J. Kunte on Tuesday held a meeting with Air India CMD Rajiv Bansal. The Thackeray government is willing to buy the building for Rs 1,400 crore. However, Air India said in the meeting that the cost of the building is Rs 2,000 crore.

The land on which the Air India building stands is owned by the state government. Air India owes Rs 400 crore to the state government. Therefore, the entire agreement will cost Rs 2,400 crore. The state government has asked Air India to provide a copy of the assessment if it wants to proceed with the sale of the building. Kunte admitted that a meeting had been held with Air India officials regarding the proposed sale of the building. The Indian Express has reported in this regard.

After the loss faced by Air India in 2018, they decided to sell the land and building lease rights. Later, during the BJP government, Chief Minister Devendra Fadnavis had shown interest in buying the building to bring the scattered offices in Mumbai into one building. The state government had bid Rs 1,400 crore for the 23-storey building. This is Rs 200 crore less than the reserve price of the building. Air India has claimed that the building is worth Rs 2,000 crore at current market prices.

Meanwhile, Air India has vacated the building and only the upper floor is in their possession. They have rented out the rest of the building. They are getting revenue from it. A senior official who attended the meeting said the government was willing to buy the building because of the location.