Daijiworld Media Network (SR)

Mumbai, May 7: The Maharashtra government has offered Rs 1,400 crore to buy the iconic Air India building situated at Mumbai's southern tip Nariman Point for it's secretariat. Though the offer is Rs 200 crore less than the reserve price Air India had set, sources said Air India has decided to go ahead with the deal as part of its asset-monetization plans.

Air India has been in debt of Rs 50,000 crore and that caused the airline to put up the iconic building for sale. Recently the finance ministry also rejected its plea for a Rs 30,000-crore bailout package. It was reported that the centre-run Jawaharlal Nehru Port Trust (JNPT) and the Life Insurance Corporation (LIC) had quoted Rs 1,375 crore and Rs 1,200 crore, respectively, for the property.

Discussions took place between Civil Aviation secretary Pradeep Kharola, Maharashtra chief secretary U P S Madan and Air India’s managing director Ashwani Lohani last week to conclude the deal. A senior state government official said, “If everything goes as planned, we may take possession before June-end.”

Maharashtra chief secretary U P S Madan told the Mumbai Mirror, “We want Air India to see to it that all licensees are being evicted at the end of their agreement period. Also, Air India should not retain any portion of the property.”

The Air India building was the airline’s headquarters till 2013 when it shifted to Delhi as part of asset-monetization plans. The state government officials affirmed that the deal will go through only if the property is vacated completely before handover.