Maharashtra Nears ₹1,600 Crore Deal to Acquire Air India Building

Mumbai, April 29, 2026: The Maharashtra government has taken a significant step toward acquiring the iconic Air India Building in South Mumbai, after transferring ₹1,600 crore to the Public Works Department (PWD) to finalise the deal.

Officials indicated that the agreement with Air India Assets Holding Limited is expected to be signed within the next two weeks, following legal vetting of the draft.

Deal Background

The Centre had approved the sale of the building to the state government for ₹1,601 crore in March 2024, with the Maharashtra cabinet clearing the proposal in November 2025.

The 23-storey sea-facing structure, located at Nariman Point near Mantralaya, is one of Mumbai’s most prominent commercial landmarks.

What the Government Plans

After the acquisition is completed, the state plans to:

• Renovate the building internally
• Make it operational within one year
• Shift multiple government offices currently operating from rented spaces

The move is aimed at reducing rental expenditure and addressing space constraints at the Mantralaya complex.

Strategic Importance

The building offers approximately 46,470 square metres of office space in Mumbai’s prime business district, which is expected to streamline administrative operations by bringing departments closer together.

Constructed in 1974 on reclaimed land, the building has long been a landmark in the city’s financial hub.

Long-Pending Deal

Air India had put the property up for monetisation in 2018 after relocating its headquarters to New Delhi. While initial bids did not materialise, discussions resumed later, with the state government eventually raising its offer and waiving certain dues to close the deal.

The acquisition marks a key step in repurposing a high-value public asset for administrative use.