The Centre on Thursday sanctioned the transfer of the Air India building in Mumbai from AI Assets Holding Company Ltd to the Maharashtra government for a sum of Rs 1,601 crore.
As part of the agreement, the Maharashtra government has decided to forgo Department of Investment and Public Asset Management (DIPAM) dues amounting to Rs 298.42 crore that would have been owed by AI Assets Holding Company Ltd, as confirmed by the DIPAM.
“GoI has approved transfer of Air India building, Mumbai of AI Assets Holding Company Ltd to Government of Maharashtra (GoM) at consideration of Rs 1601 cr. GoM has agreed to waive dues of Rs. 298.42 cr, which would have been otherwise payable by AIAHL to GoM for this transaction,” DIPAM said in a post on X.
Earlier, AI Assets Holdings Ltd, a state-owned entity established to oversee Air India’s debt and assets following its acquisition by the Tata Group in January 2022, declined a prior offer from the Maharashtra government for office accommodations within the Air India building.
Acquiring the Air India building holds significant strategic value for Maharashtra, especially considering its proximity to ‘Mantralaya’, the state government’s administrative headquarters established in 1955.
Under the Air India divestment plan, the government assumed the airline’s debt of approximately Rs 45,000 crore along with all non-core assets, which encompassed around 111 properties, including office buildings and housing colonies.
These assets were estimated to have a total value of Rs 14,718 crore, as outlined in a government statement released in 2021.
