Friday, May 17, 2019

Maharashtra govt offers Rs 1400 cr for iconic Air India building in Mumbai

Soon, Mumbai’s iconic Air India building may possibly be the new address for workplaces of the Maharashtra secretariat. In what is maybe the first occurrence of the state purchasing back land it had rented, the government has presented the national carrier Rs 1,400 crore to take over the property.
However the state’s offer is Rs 200 crore less than the reserve amount Air India had fixed, sources said the national carrier has decided to go forward with it as part of its strategy to monetise its real estate assets.
The Centre-run Jawaharlal Nehru Port Trust (JNPT) as well as the Life Insurance Corporation (LIC) had estimated Rs 1,375 crore and Rs 1,200 crore, individually, for the property.
Air India, which has been into controversy in the recent months had run into debt of Rs 50,000 crore and the first step they had put up is the sale of leasehold rights of the land and the building last December. Maharashtra had rent out the sea-facing property to the carrier in the year 1970 for 99 year’s occupancy.
For the period of the first round of bidding, only the LIC stand up to a quote, stimulating a second round. On the other hand the state government used its status as the land’s owner to appeal the “first right to refusal” situation before edging former JNPT. Only government bodies were allowed to take part in both rounds.
17/05/19 Naman Dhyani/Dekh News
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