New Delhi: The Tata Group has submitted their bid for the purchase of national carrier Air India on Wednesday, reported news agency ANI. The bid comes on the deadline day that was earlier announced by the Union Minister of Civil Aviation Jyotiraditya Scindia.
“Financial bids for Air India disinvestment received by Transaction Adviser. Process now moves to concluding stage,” tweeted Secretary, Department of Investment and Public Asset Management (DIPAM).
A Tata Sons spokesperson confirmed to PTI that the group has put in a bid for the national carrier.
If successful, this will mark the return of Air India to the Tata fold after 67 years.
The Tata Group founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.
The stake sale process, which began in January 2020, faced delays due to the COVID-19 pandemic.
In April 2021, the government asked potential bidders to put in financial bids.
ential investors, the government had in October last year sweetened the EoI clause relating to the transfer of Air India’s debt to the new investor, giving bidders flexibility to decide on the quantum of humongous debt they want to absorb.
As per the Air India EoI floated by DIPAM in January 2020, of the airline’s total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore. The rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle.
Scindia had said earlier this month that the process will be conducted as soon as possible.
The airline currently has a debt in excess of Rs 40,000 crore.
Under the disinvestment move, the Centre wants to sell 100 per cent of its stake in Air India and Air India Express.
It will also sell 50 per cent of its stake in the Air India SATS Airport Services Private Limited (AISATS) which is its ground handling company.