Salt-to-software conglomerate Tatas have received the bid to amass debt-laden state-run Air India providing Rs 18,000 crore for buying 100 per cent shareholding, a senior authorities official stated on Friday.
An SPV of Tata Sons – the holding firm of conglomerate – has emerged as profitable bidder, Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM) — the federal government division chargeable for privatisation – stated.
Tata Sons beat SpiceJet promoter to bag Air India.
The DIPAM secretary stated Tatas’ bid of Rs 18,000 crore includes taking up 15,300 crore of debt and paying the remainder in money.
Both bidders had quoted above the reserve worth, he stated including the transaction is deliberate to be closed by December.
He stated a bunch of ministers comprising Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Civil Aviation Minister Jyotiraditya Scindia has cleared the profitable bid for Air India on October 4.
This marks the return of Air India to the Tatas.
Jehangir Ratanji Dadabhoy (JRD) Tata based the airline in 1932. It was referred to as Tata Airlines then. In 1946, the aviation division of Tata Sons was listed as Air India and in 1948, Air India International was launched with flights to Europe.
The worldwide service was among the many first public-private partnerships in India, with the federal government holding 49 per cent, the Tatas retaining 25 per cent and the general public proudly owning the remainder.
In 1953, Air India was nationalised.
The authorities is promoting 100 per cent of its stake within the state-owned nationwide airline, together with Air India”s 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services.