National carrier Air India, which has been incurring losses, finally has some respite. The country's biggest container port, Jawaharlal Nehru Port Trust (JNPT), is keen on buying the iconic office building in Mumbai.
The central government even set up an inter-ministerial panel of secretaries belonging to the shipping and civil aviation department to work out the modalities. The proposal was initiated after it got the in-principle approval from Prime Minister Narendra Modi, Press Trust of India reported.
"JNPT will decide buying it based on the cost of the building and how reasonable the price is," a government official told The Times of India.
"The new owner will have about 60 years of the lease of this building and hence can be a better investment proposition for the government undertakings, which are sitting on huge cash. Because of the bureaucratic reason, these entities prefer to put money in banks or as equity in projects rather than exploring more profitable opportunities. This can be one such opportunity," another official was quoted as saying by TOI.
The decision to sell the iconic property comes days after the government deferred the plan to sell a 76 percent stake in the cash-strapped national carrier. Air India's debt burden is estimated to be over Rs 50,000 crore, the daily reported.
Although the property may soon be sold, the name of the building will not change since it is considered as a landmark in Mumbai.
About the iconic Air India office building
The Air India building in Mumbai's Nariman Point is one of the most recognisable spots in India's financial capital.
The 23 floors in the building are spread over a carpet area of 10,000 sq ft. The lease rate is said to be Rs 350 per sq ft and the rental per floor is estimated around Rs 35 lakh per month. The landmark building is also occupied by offices of the Income Tax Department, Tata Consultancy Services and State Bank of India among other organizations, according to a Mumbai Mirror report.
The building houses artwork of MF Husain, SH Raza, and VS Gaitonde, which have been collected for over 60 years.
