The state finance department in Mumbai has approved funds to purchase the iconic Air India building in South Mumbai, and state government offices will soon be relocating to the building. The state public works department (PWD) has conducted an inspection of the building and cleared the takeover. This move is aimed at addressing the state government’s massive space crunch, with major offices set to move to the 22-storey building.
The state government will pay around Rs 1,601 crore for the building, which offers 46,470 square meters of space for government offices. The cabinet had cleared the plan in November 2023 to buy the building to expand Mantralaya and house state government offices.
In 2022, the then Deputy Chief Minister Fadnavis had met the Union Civil Aviation Minister Jyotiraditya Scindia to request priority consideration for the state government’s proposal to acquire the building. The Reserve Bank of India (RBI) was also in the fray to buy the building, but the state government has emerged as the top bidder.
Chief Minister Devendra Fadnavis confirmed that the takeover is in its final stages, and the funds will be transferred to AI Assets Holdings Ltd, which owns the building, soon. Fadnavis expressed his gratitude to Scindia for considering the state government’s proposal, stating that the state government’s space crunch was exacerbated by the lack of available space in Mantralaya and its annexe building.