Wednesday, August 11, 2021

Maharashtra govt resumes discussion on buying Air India building

Mumbai: The state government has reinitiated discussions over the purchase of the iconic Air India building at Nariman Point, with Maharashtra Chief Secretary S J Kunte holding a meeting with Air India CMD Rajiv Bansal on Tuesday to deliberate on the deal.

While the MVA government is keen on purchasing the building at Rs 1,400 crore, Air India told the state government in the Tuesday meeting that its internal valuation was around Rs 2,000 crore.

A senior state official said that the land on which the AI building stands is owned by the state government and AI is supposed to pay Rs 400 crore as various outgoings. As a result, the entire deal will cost Rs 2,400 crore. The state government is said to have asked Air India to give a copy of its valuation report if they want to proceed with the sale of the building.

Kunte acknowledged that a meeting had taken place with AI officials over the proposed sale of the building. “We are examining various legal and valuation issues,” Kunte said.

AI CMD Bansal refused to comment, stating that it was an internal meeting.

The national air carrier had in the face of mounting losses decided to put up for sale leasehold rights of the land and the building in December 2018.

The previous BJP government led by Devendra Fadnavis had evinced interest in buying the building to house its various offices scattered across Mumbai.

11/08/21 Yogesh Naik/Indian Express

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