At over Rs. 1,000 crore, JNPT bid for Air India tower is highest.

State-owned Jawaharlal Nehru Port Trust (JNPT), India’s biggest container gateway, has placed a more than Rs. 1,000-crore bid to buy debt-ridden Air India’s iconic 23-storey tower located at Mumbai’s Marine Drive in Nariman Point, facing the Arabian Sea.

JNPT’s bid was higher than that of state-run insurer LIC, the only other bidder to participate in the auction, a top government official said, asking not to be named because the bid results have not been made public yet.

The bid, though, is yet to be finalised because JNPT’s price quotation is below the reserve price set by the national carrier, and the transaction needs a no-objection certificate (NoC) from the Maharashtra government, which had leased the land for the tower many years ago.

“There were only two bids and JNPT was the highest bidder. The State government did not bid after showing initial interest. The land is leased by the State government. So, legally, it requires an NoC from itself… Also, Air India had high expectations and had set a reserve price in the range of Rs. 1,600 crore. JNPT’s bid is lower than that. Hence, Air India can take its own call or ask JNPT to raise the price,” the official said, adding that Air India has kept the whole process confidential.

JNPT, according to the official, will have to take approvals from the Public Investment Board and the Union Cabinet to buy the tower as the price is more than Rs. 1,000 crore.

Only State governments and PSUs were allowed to participate in the auction.

The tower was built in 1974, designed by John Burgee of New York-based firm Johnson and Burgee. It was the corporate headquarters of Air India till 2013, when it shifted base to New Delhi following a 2007 merger with Indian Airlines.

An earlier plan to sell the tower to JNPT without a tender was called off to avoid allegations of irregularities.

Air India could not be reached for comment.

HBL