Tata Sons succeeds bid for Air India
The wait is finally ended. Tata Sons has won the bid for national carrier Air India, as per a report.
A panel of ministers has acknowledged the conglomerate's proposal to take over the airline, the report said. An official declaration is expected in the coming days.
The source has independently confirmed it at the Ministry of Civil Aviation that Tata Sons is indeed the frontrunner for the bid. "The Tatas have placed the highest bid for Air India," the source stated, adding that an official decision on the disinvestment rollout will be taken in the next few days. The government plans to complete the hand over of the airlines to its new owners by December.
The Tatas have a long history with the national carrier. It was JRD Tata who founded the airlines and piloted the first flight that inaugurated Indian aviation in 1932.
Prime Minister Narendra Modi's government has been pushing to trade its entire interest in the loss-making airline, kept aloft by a bailout since 2012.
The government loses nearly Rs 20 crore every day to run the national carrier, which has accumulated losses of over Rs 70,000 crore officials have said.
An effort to auction a majority stake almost three years ago drew no bids, forcing the government to ease the terms. It had also extended the deadline multiple times due to the pandemic.