Tata Sons wins bid for Air India: Govt Sources
Tata Sons has won the final bid for acquiring national carrier Air India, according to government sources. The salt-to-software conglomerate had submitted the final bid for the airline on September 15 and emerged as the frontrunner to acquire the airline.
While SpiceJet promoter Ajay Singh had also submitted a bid for the airline, government sources have confirmed that Tata Sons submitted a higher offer for acquiring the airline. Sources said a ministerial panel led by Union Home Minister Amit Shah approved the bid submitted by Tata Sons.
The development comes a day after a report indicated that the government finalised the minimum reserve price for the airline. The government had finalised the minimum reserve price for the national carrier, based on future cash flow projection, brand value and slots in foreign airports.
Sources indicated that the bid submitted by Tata Sons was Rs 3,000 crore more than the minimum reserve price set by the government committee.
Top sources from the Ministry of Civil Aviation said all formalities for the Air India disinvestment process will be completed by December 2021.Many reports had earlier indicated that Tata Sons emerged as the frontrunner to acquire Air India as it submitted a higher bid for the debt-laden airline.
Former Air India director Jitendra Bhargava recently told Bloomberg TV that the Tatas are will get a nod from the government as they have the capability to pour in a large amount of money required to revamp the national carrier.
“Tatas have been very, very passionate about Air India,” Bhargava said. (source India Today)