New Delhi: The central government on Friday announced that Tata Sons has won the bid to acquire Air India. The Indian conglomerate will retain all Air India employees for one year and will need to offer the group a voluntary retirement plan if it decides to lay off after this period.
Civil Aviation Secretary Rajiv Bansal said, “The winning bidder (Tata Sons) will retain all the employees for a period of one year. In the second year, if they are not retained, they will be offered VRS by the winning bidders. Will go.” Journalists here.
He said that gratuity, pension fund and post-retirement medical benefits would also be awarded by the winning bidders.
The government has said that the interests of employees and retired employees will be taken care of in the disinvestment process. Tales Private Limited, a wholly owned subsidiary of Tata Sons, won the bid to acquire Air India, marking the end of the process. To privatize the national carrier with the government approving disinvestment.
The CCEA-approved Air India Specific Alternative Mechanism (AISAM) approved the highest price bid of Talace Pvt Ltd for sale of 100 per cent equity shareholding of Government of India in Air India along with Air India’s equity shareholding in AIXL and AISATS. The winning bid is Rs 18,000 crore as an Enterprise Value (EV) consideration for AI (100 per cent share of AI with AI’s stake in AIXL and AISATS).
The transaction does not include non-core assets, including land and building, valued at Rs 14,718 crore, to be transferred to Air India Asset Holding Limited (AIAHL), a government of India. AISAM includes Home Minister Amit Shah, Finance Minister Nirmala Sitharaman. Commerce and Industry Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia. Read also: Buying a Smartphone? Check Airtel cashback offer to get Rs.6000 off on phone purchase
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), told reporters that Tales was the highest bidder, while the Ajay Singh-led consortium had put in a bid of Rs 15,100 crore. Read also: Facebook Updates! The social media giant has come up with a new page design for Indian users.