NEW DELHI: Taking forward the proposal for sale of the Air India building at Nariman Point in Mumbai to Jawaharlal Nehru Port Trust (JNPT), both the entities on Tuesday decided to appoint two separate assessors to work out the value of the iconic building.

"The assessors will submit their report by August 15. The proposal to have a common assessor was not accepted by the two parties," said a source, who was present at a high-level meeting in the shipping ministry. The closed bidding process is only for the JNPT.

Sources said since it will mean only transfer of the property from one government entity to another, there was no need for open bidding.

The national carrier's 23-storey building has three lakh sq feet built-up area and 17 floors. Most of it can be rented out by the new owner. It's learnt that the current rental income is around Rs 100 crore per year.

The sale of the Air India building after the government deferred the plan to sell 76% stake in Air India, citing the current economic conditions, and signals the intent to raise funds that could help cover a part of the ailing airline's survival plan. The airline is saddled with loans of over Rs 50,000 crore which eats up its revenues in a highly-competitive market.

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 undertaking, which are sitting on over Rs 4,700 crore.

The building was the corporate headquarters of the airline till 2013. In February 2013, Air India officially vacated the building as part of its asset-monetisation plan, and shifted its corporate office to Delhi.

