Air India Sold To Tatas For Rs 18,000 Crore
NDTV
Tata Sons Pvt. was selected as the winning bidder for Indias flag carrier, ending decades of attempts to privatize a money-losing and debt-laden airline, and potentially ending years of taxpayer-bailouts thats kept the company alive.
New Delhi: Tata Sons Pvt. was selected as the winning bidder for India's flag carrier, ending decades of attempts to privatize a money-losing and debt-laden airline, and potentially ending years of taxpayer-bailouts that's kept the company alive.
Tata Sons, which originally launched Air India Ltd. with a namesake branding in 1932, bid Rs 18,000 crore ($2.4 billion) as an enterprise value for Air India, Tuhin Kanta Pandey, the top bureaucrat at India's Department of Investment and Public Asset Management, said at a briefing on Friday. The government aims to complete the transaction by the end of 2021.
The high-profile sale is a boost for Prime Minister Narendra Modi, who has embarked on a bold privatization plan to plug a widening budget deficit, validating his stand of the state staying away from most businesses. For Tata Sons, Air India adds a third airline brand to its stable, and gives it access to more than a hundred planes, thousands of trained pilots and crew, and lucrative landing and parking slots all around the world.
Bloomberg News reported last week that a panel of ministers accepted a proposal from bureaucrats, who recommended the conglomerate's bid ahead of an offer from entrepreneur Ajay Singh. The consortium led by Singh, who's also the chairman of budget carrier SpiceJet Ltd, bid Rs 15,100 crore, Pandey said.
