The Maharashtra government has acquired Mumbai’s iconic Air India Building at Nariman Point for ₹1,601 crore in a major property transaction aimed at strengthening administrative infrastructure and reducing long-term operational costs.
The purchase, cleared by the state cabinet, will enable the government to relocate several departments currently functioning from rented premises across Mumbai. Officials said the move is expected to improve coordination between departments, streamline administrative processes and generate substantial savings on office rentals over the coming years.
Located in one of India’s most expensive commercial districts, the Air India Building is a 23-storey landmark overlooking Marine Drive. The property was owned by Air India Assets Holding Ltd (AIAHL), which manages the airline’s non-core assets following the privatisation of Air India.
According to the state government, the building’s strategic location and large office space make it suitable for accommodating multiple departments under a single roof. The move is expected to ease logistical challenges faced by government offices operating from different locations across the city.
Officials said Mumbai’s high commercial rentals were a key factor behind the decision. By purchasing the property outright, the government aims to create a permanent administrative centre while reducing recurring expenditure on leased office spaces.
The acquisition is also expected to give a new purpose to one of Mumbai’s most recognised buildings. The Air India Building has been a prominent part of the city’s skyline for decades and remains one of the most valuable properties in the Nariman Point business district.
Before government offices begin shifting to the premises, the building is expected to undergo renovations and infrastructure upgrades. Authorities are likely to prepare a phased transition plan to ensure smooth relocation of departments.
