After 69 years, the former govt-owned national carrier Air India, starting January 27, 2022 has now gone back to its original owners, the Tata Group.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey informed of a successful conclusion of the strategic disinvestment transaction of Air India to Talace Pvt Ltd, a subsidiary of Tata Group, on Jan 27, 2022.
The Secretary informed that a new Board would be formed to take charge of Air India, led by the Strategic Partner.
Air India Successfully Sold to the Tatas on Jan 27
In Oct, 2021, national carrier Air India was sold to Talace Pvt Ltd by the Govt of India for a total of Rs 18,000 crore.
With this, all formalities related to the Air India disinvestment transaction have now been closed.
Ahead of the official handover of the national carrier, Tata Sons Chairman N Chandrasekaran informed meeting PM Modi.
“We have transferred shares. Entire Rs 15,300 crore of debt which was to be retained, has also been accepted. So all processes are completed”, added the DIPAM Secretary.
Union Minister Jyotiraditya Scindia highlighted the time-bound conclusion of disinvestment process of Air India, indicating the govt’s ability and resolve to carry out disinvestment effectively in non-strategic sectors in the future.
Complete Overview of the Disinvestment Process of Air India to the Tatas
After selling the national carrier to Talace, a Letter of Intent was issued to confirm that the government was willing to sell 100% of its stake in the airline to the Tata Group, following which the Centre signed the share purchase agreement.
Tata Group is now in control of 3 major airline brands operating in the country, as it holds a majority interest in AirAsia India and Vistara. Air India would be its third airline brand and India’s first successful privatization since 2003-04.
While it holds 100% stake in Air India, the Tata Group will not get to retain non-core assets, like the Air India Building at Nariman Point or at Delhi, among others, and it will hold 50% stake in ground handling arm Air India SATS.
After 69 years, Tata Group will officially welcome Air India.
“Your arrival was much awaited, @airindiain”, tweeted Tata Group.
Comments are closed, but trackbacks and pingbacks are open.