New Delhi: Tata Sons has won the final bid for acquiring national carrier Air India, according to government sources. Tata Sons Ltd has submitted a bid for Air India earlier this month while the other bidder is SpiceJet Ltd. owner Ajay Singh in his personal capacity.
A panel of ministers led by Union Home Minister Amit Shah accepted a proposal from officials recommending the salt-to-software conglomerate ahead of an offer from Ajay Singh, promoter of India’s airline operator Spicejet Ltd, the report said.
The development comes a day after a report indicated that the government finalized the minimum reserve price for the airline. The government had finalized the minimum reserve price for the national carrier, based on future cash flow projection, brand value and slots in foreign airports.
All formalities for the Air India disinvestment process will be completed by December 2021, said sources from the Ministry of Civil Aviation.
This marks the return of Air India to Tata fold after 67 years. The Tata Group founded Air India as Tata Airlines in October 1932. The government nationalized the airline in 1953.
The stake sale process, which begun in January 2020, faced delays due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to put in financial bids. The last day for placing financial bids was September 15.
Tata Sons wins the bid for national carrier Air India. Tata Sons was the highest bidder. Union Home Minister Amit Shah-led ministerial panel has given approval to this bid: Sources pic.twitter.com/99OdR9LXCA
— ANI (@ANI) October 1, 2021
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Ms Kalinga