Maharashtra Takes Over Landmark Air India Tower at Nariman Point for Rs 1,601 Crore

Mumbai, 3rd June 2026: In a major administrative infrastructure move, the Maharashtra government on Tuesday officially acquired the iconic Air India building at Nariman Point in South Mumbai for ₹1,601 crore.

The transfer agreement between Air India Assets Holding Limited (AIAHL) and the Maharashtra Public Works Department (PWD) was completed in the presence of Chief Minister Devendra Fadnavis at the Cabinet Hall in Mantralaya after the state cabinet meeting.

Senior government officials and ministers, including Deputy Chief Minister Sunetra Pawar, Tourism Minister Shambhuraj Desai, Public Works Minister Shivendrasinhraje Bhosale, Chief Secretary Rajesh Agrawal, Additional Chief Secretary (PWD) Milind Mhaiskar, Mumbai City Collector Anchal Goyal, and Air India officials, attended the handover ceremony.

The 23-storey Air India building, located at the prestigious Nariman Point business district, has been one of Mumbai’s most recognisable landmarks since its construction in 1974. Built on reclaimed land owned by the Maharashtra government, the sea-facing commercial tower became a symbol of Mumbai’s growing urban identity over the decades.

After the privatisation of Air India and its takeover by the Tata Group, the airline’s non-core assets, including the Nariman Point property, were transferred to Air India Assets Holding Limited.

The Maharashtra government had been in discussions to acquire the property since 2021 due to increasing office space requirements for state departments operating around Mantralaya and South Mumbai. In November 2023, the state cabinet approved the purchase and also waived approximately ₹298 crore in unrealised income and interest dues linked to AIAHL. The Central government granted final approval for the transaction in March 2024.

Earlier this year, the Finance Department transferred ₹1,600 crore to the Public Works Department to finalise the acquisition process. The government plans to utilise the building, spread across more than 45,000 square metres, to consolidate various state government offices and reduce dependence on rented office spaces.

Following the takeover, Public Works Minister Shivendrasinh Bhosale directed officials to carry out a detailed structural audit and undertake all essential repairs before relocating government departments to the premises.

He emphasised that all renovation and redevelopment work must prioritise structural safety, quality, long-term sustainability, and efficient technical infrastructure, including electrical systems and fittings.

The minister also suggested redesigning the building’s main entrance to reflect Maharashtra’s cultural heritage and recommended involving renowned architects and expert agencies in the redevelopment process.

“The transfer of the Air India building to the Maharashtra government marks an important step in strengthening administrative infrastructure. The building will be developed as a modern model government complex with emphasis on sustainability, quality and citizen convenience,” Bhosale said.

The acquisition is being viewed as a significant milestone in the state government’s efforts to modernise and centralise its administrative operations in Mumbai.