Air India had last December floated tender to sell its 23-storey building as part of larger asset monetisation plan and allowed only government entities to participate in the bidding for acquiring lease hold rights on
Air India had last December floated tender to sell its 23-storey building as part of larger asset monetisation plan and allowed only government entities to participate in the bidding for acquiring lease hold rights on "as is where is basis". (Reuters)

RBI bids for Air India's iconic Nariman Point tower in Mumbai

  • RBI wants to take the whole building
  • RBI is willing to give advance lease rentals for 10 years advance payment upfront for Air India's tower at Nariman Point in Mumbai

NEW DELHI:

Reserve Bank of India (RBI) has tossed its hat in the ring for the taking over of Air India's iconic tower at Nariman Point in Mumbai.

The central bank is learnt to have offered 10 years' lease rental as advance payment, a top reliable source told IANS .

"The RBI wants to take the whole building and is willing to give advance lease rentals for 10 years advance payment upfront," he said.

In response to an IANS query on the development, the RBI declined to comment.

Earlier, state-controlled LIC and Jawaharlal Nehru Port Trust (JNPT) had expressed interest to acquire the signature building with the latter ready to shell out about 1,300 crore.

A section of Air India employees has, however, vehemently opposed the government move to sell the building and has sought to reconsider the decision.

"We are already generating 130 crore annually from the building and can generate 400-500 crore a year. There is huge scope for advertising the way it happens in the US and other countries," a senior executive said.

The national carrier had last December floated tender to sell its 23-storey building as part of larger asset monetisation plan and allowed only government entities to participate in the bidding for acquiring lease hold rights on "as is where is basis".

"It does not make sense to sell the building. If properly managed, the building can earn in just a few years what prospective buyers have offered," the person quoted above said.

The government had mooted the plan to sell the Nariman Point building after its plan to sell majority 74% stake in the carrier proved a damp squib with no private investor turning up for the offer.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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