Maharashtra acquires iconic Air India building for Rs 1,601 crore in landmark Mumbai deal

In a landmark deal, Maharashtra has taken ownership of the Air India tower at Nariman Point, aiming to expand office space and improve administrative efficiency

PGurus Newsdesk

June 3, 2026

The historic Nariman Point landmark enters a new chapter as Maharashtra plans to transform it into a major government complex

Maharashtra acquires iconic Air India building for Rs 1,601 crore

The Maharashtra government has formally acquired Mumbai’s iconic Air India building for Rs 1,601 crore, marking the completion of a long-pending deal aimed at expanding administrative infrastructure in the state’s financial capital.

The transfer of ownership was completed on Tuesday through agreements signed between Air India Assets Holding Limited (AIAHL) and the Maharashtra Public Works Department (PWD) in the presence of Chief Minister Devendra Fadnavis at Mantralaya.

Located at Nariman Point, the 23-storey sea-facing tower has been one of Mumbai’s most recognisable landmarks since it was constructed in 1974 on reclaimed land owned by the state government.

Landmark tower to become government complex

Following Air India’s privatisation and acquisition by the Tata Group, several non-core assets, including the Nariman Point building, were transferred to AIAHL.

The Maharashtra government had been pursuing the acquisition since 2021 as it sought additional office space in South Mumbai and explored ways to reduce rental expenditure for various departments.

The state cabinet approved the purchase in November 2023 for Rs 1,601 crore, while also waiving approximately Rs 298 crore in unrealised income and interest dues linked to the property. The Centre subsequently granted final approval for the transfer in March 2024.

The process moved into its final stage earlier this year when the Finance Department released nearly Rs 1,600 crore to the PWD for completing the acquisition.

Structural audit and renovation planned

Public Works Minister Shivendrasinh Bhosale said the state has now officially taken possession of the property and will begin preparations to convert it into a modern government complex.

During a review meeting after the handover, the minister instructed officials to conduct a comprehensive structural audit before beginning any renovation or relocation activities.

He emphasised that all repair and refurbishment work should focus on long-term sustainability, quality construction and modern infrastructure standards. Officials were also directed to upgrade electrical systems, fittings and other technical facilities.

Bhosale further suggested redesigning the building’s main entrance to reflect Maharashtra’s cultural heritage and recommended involving leading architects and specialist agencies in the redevelopment process.

Major boost for administrative infrastructure

The Maharashtra government plans to consolidate multiple offices within the more than 45,000-square-metre structure, helping address space constraints around Mantralaya and improving administrative efficiency.

Calling the acquisition a significant milestone, Bhosale said the building would be developed as a model government complex prioritising quality, sustainability and public convenience.

Several senior leaders and officials, including Deputy Chief Minister Sunetra Pawar, Tourism Minister Shambhuraj Desai, Chief Secretary Rajesh Agrawal, Additional Chief Secretary Milind Mhaiskar and representatives of Air India, were present during the formal transfer ceremony.

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