Last Updated: March 23, 2023, 11:43 IST
The land rights for the sea-facing Nariman Point constructing belong to the Maharashtra authorities. (Photo: Reuters)
The funding and public asset administration division is assessing the contemporary bid for the 23-storey constructing
Air India is about to promote the service’s iconic constructing in Mumbai’s Nariman Point for Rs 1,600 crore. Air India Assets Holdings Limited (AIAHL), which was created to handle Air India’s debt and sources following its acquisition by Tata Group in January 2022, will promote the tower to the Maharashtra authorities. The firm had beforehand refused a proposal made by the state administration, livemint has reported.
The publication quoted an nameless supply saying that “the contemporary provide by the Maharashtra authorities has been accepted, and the method is on inside the authorities to clear the sale. The ultimate approval will come from the ministerial group (headed by Union dwelling and cooperation Minister Amit Shah)”.
Currently, the investment and public asset management department is assessing the fresh bid for the 23-storey building. In the past, several entities, including Life Insurance Corporation of India (LIC) and Jawahar Lal Nehru Port Trust had shown interest in the property. However, Air India (then a state-owned airline) could not sell it despite making concerted efforts since 2018.
The Government of India took over the airline’s debt of Rs 45,000 crore and roughly 111 properties (all non-core assets) as part of its divestment plan of Air India. The estimated value of these properties, which include the office building and housing colonies, was Rs 14,718 crore, according to a 2021 government statement.
As part of the divestment move, it was decided that assets whose land rights belonged to government departments or state governments would be sold to that entity. The land rights for the sea-facing Nariman Point building belong to the Maharashtra government. The administration had given it on a 99-year lease to Air India in 1970.
Maharashtra state’s interest in the commercial tower is understandable. The government is short of space for its departments. The Air India building could become a part of the government secretariat. It is located close to the administrative headquarters of the state which was built in 1955.
So far, it has taken four rounds of e-auctions to sell off most properties with clear records. A couple more high-profile buildings are undergoing the monetisation process.
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