Govt expects benefit from sale of Air India bldg

Mumbai: The state government is expecting to benefit from the sale of the iconic Air India building, which is to be held today. The ready reckoner rate of the plot will be determined, of which 25 per cent will be charged by the state if the Air India transfers the property to someone else. The officials are expecting to earn around Rs 60 crore from this sale. A meeting on the sale will be held on Friday at Sahyadri guesthouse. Jawaharlal Nehru Port Trust (JNPT) is keen to buy the property.

“As per the new lease policy, government will get a share if there is a sale of property or transfer of lease. In case of Air India building, the lease period is not over hence lease will be transferred. We are expecting to get upto Rs 60 crore from the sale,” said a senior official from the revenue department. The 23 storey Air India building was occupied by the airline staff till 2013. Later, the building had to be vacated owing to its asset-monetisation plan. The property at Nariman Point is considered as a prime area and is expected to fetch high valuations. The government decided the sale of property as a part of strategic disinvestments due the company’s financial crisis. Air India’s debt burden is assumed to be more than Rs 50,000 crore.

“A meeting will be held today where chief secretary of Civil Aviation will also be present,” added the official.