New Delhi: Tata Sons has made a winning bid of Rs 18,000 crore for Air India, DIPAM secretary said on Friday. The salt-to-software conglomerate has won the bid to acquire debt-ridden Air India, with an offer of Rs 18,000 crore to acquire 100 per cent shareholding.
Tata Sons has defeated the promoter of SpiceJet to defeat Air India. Tata’s bid of Rs 18,000 crore includes taking a loan of Rs 15,300 crore and paying the rest in cash. The government is selling its 100 per cent stake in the state-owned national airline, which includes Air India’s 100 per cent stake in AI Express Ltd and a 50 per cent stake in Air India SATS Airport Services Pvt Ltd.
Welcome back Air India pic.twitter.com/euIREDIzkV
— Ratan N Tata (@RNTata2000) 8 October 2021
Panel of Ministers approves winning bid for Air India; DIPAM Secretary said that two bidders had made financial bids. Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia have approved the winning bid for Air India on October 4.
Prime Minister Narendra Modi’s government has been pushing to sell its entire interest in the loss-making airline, put on hold by a bailout since 2012.
Officials said the government loses about 200 million rupees every day to running the national carrier, leaving more than 700 billion rupees ($9.53 billion) in losses.
An attempt to auction a majority stake nearly three years ago led to no bidding, forcing the government to relax the conditions. It had extended the deadline several times due to the pandemic.