Mumbai’s iconic Air India building set to become Maha govt hub soon
The Maharashtra government is set to acquire the iconic Air India building in Mumbai for ₹1,600 crore, aiming to consolidate government offices and alleviate space constraints at Mantralaya.
IMAGE: The iconic Air India building in Mumbai. Photograph: The late Danish Siddiqui/Reuter Key Points The acquisition aims to consolidate government offices and address space constraints at Mantralaya. The 23-storey Air India building will provide approximately 46,470 square metres of office space. The state government plans to renovate the building and make it operational within a year. The acquisition process gained momentum after discussions between state and central government officials.
The Maharashtra government has moved closer to acquiring the iconic Air India building in south Mumbai after the Finance Department transferred Rs 1,600 crore to the Public Works Department, setting in motion the process to finalise the agreement with Air India Assets Holding Limited.
A senior Public Works Department (PWD) official said the draft agreement would be sent for vetting to avoid any lacunae and is likely to be signed within the next two weeks.
The Centre approved the sale of the building to the Maharashtra government for Rs 1,601 crore in March 2024, and the state cabinet cleared the acquisition in November 2025.
Once the agreement is signed and the property is transferred, the state government will undertake internal renovations and make the 23-storey sea-facing structure operational within a year. It plans to shift several offices, many of which currently function from rented premises, to the building located near the Mantralaya at Nariman Point.
The move comes amid a space crunch at the Mantralaya and its annexe. After a major fire at the secretariat complex in 2012, several departments shifted to different parts of the city, leading to continued expenditure on rented offices.
Officials said the acquisition will provide around 46,470 square metres of office space in close proximity to the state secretariat, helping streamline administrative functioning.
The building, constructed in 1974 on reclaimed land leased by the state government to Air India, was designed by architect John Burgee, and remains a prominent landmark in the city's financial district.
Air India had decided to monetise the asset in 2018 after shifting its headquarters to New Delhi. While the airline had initially sought around Rs 2,000 crore, the Maharashtra government had offered Rs 1,400 crore. Other bidders included the Jawaharlal Nehru Port Authority (JNPA) and the Life Insurance Corporation of India (LIC), which had quoted lower amounts, but the process stalled.
Discussions resumed after the Eknath Shinde-led government assumed office, with the state eventually raising its offer to Rs 1,601 crore and waiving nearly Rs 300 crore in dues related to unrealised income and interest on the leased land.
In 2022, the then deputy chief minister Devendra Fadnavis had met then Union civil aviation minister Jyotiraditya Scindia to seek preference for the state government in the sale process.
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