Mumbai: The Maharashtra government has moved a step closer to acquiring the landmark Air India building in south Mumbai after the Finance Department transferred ₹1,600 crore to the Public Works Department (PWD). This financial clearance paves the way for finalising the agreement with Air India Assets Holding Limited.
According to senior PWD officials, the draft agreement will be sent for legal vetting to ensure there are no gaps, with the signing expected within the next two weeks. The Centre had approved the sale of the property to the state government for ₹1,601 crore in March 2024, while the state cabinet gave its nod in November 2025.
Once the deal is finalised and ownership is transferred, the government plans to undertake internal renovations of the 23-storey sea-facing structure. The building is expected to be operational within a year, with multiple government departments, currently functioning out of rented offices, likely to be relocated there. Its proximity to Mantralaya at Nariman Point is expected to significantly streamline administrative operations.
The move comes against the backdrop of a long-standing space crunch at Mantralaya and its annexe. Following a major fire at the secretariat complex in 2012, several departments were relocated across the city, resulting in continued expenditure on leased office spaces.
Officials noted that the acquisition will provide approximately 46,470 square metres of office space, helping consolidate departments closer to the state’s administrative headquarters and improve efficiency.
Constructed in 1974 on reclaimed land leased by the state government, the building was designed by noted architect John Burgee and remains a prominent landmark in Mumbai’s financial district.
Air India had decided to monetise the property in 2018 after relocating its headquarters to New Delhi. While the airline initially sought around ₹2,000 crore, the Maharashtra government had offered ₹1,400 crore. Other bidders, including Jawaharlal Nehru Port Authority and Life Insurance Corporation of India, had submitted lower bids, leading to a stalled process.