According to media sources, Tata Sons has won the auction for national airline Air India.
“The Tatas have put in the highest bid for Air India,” the source claimed, adding that the winning bid would be announced in the coming days.
According to CNBC TV-18, the government intends to hand over the airlines to their new owners by December.
The Tata Group is also said to be interested in buying roughly 15% of the airline’s overall debt.
“Government of India clearance of financial bids in the AI disinvestment case is erroneous, according to media sources. The government’s decision would be announced to the media as soon as it is made “Secretary, Department of Investment and Public Asset Management, Tuhin Kanta Pandey, tweeted (DIPAM).
The government, on the other hand, has denied allegations in the media that Tata Group had won the bid for debt-ridden Air India. Bloomberg had predicted that the salt-to-software giant will re-acquire the national carrier after losing it to the government more than half a century ago. “Media reports implying that the Government of India has approved financial bids in the AI disinvestment issue are false,” the finance ministry said on Friday, adding that the media would be informed of any decision “as and when it is taken”Financial bids in the AI disinvestment case were approved by the Government of India, according to media reports were incorrect. The government’s decision would be made public as soon as it is made “Secretary, Department of Investment and Public Asset Management, Tuhin Kanta Pandey, tweeted about it (DIPAM)..”
The PM Modi-led government has attempted to sell Air India for the second time. In March of this year, the government attempted but failed to sell the troubled airline. However, due to concerns over the airline’s burgeoning debt, its declaration of interest in selling a 76 percent ownership in Air India found no takers at the time.
According to sources, Air India has lost over 70,000 crores and the government loses around 20 crores every day to operate the national carrier.