Amid reports claiming that the Central government had accepted the proposition suggesting Tata Group’s bid for Air India, the debt-stricken airline run by the state which was highlighted accounts, the Secretary, Department of Investment and Public Asset Management, GoI took to Twitter to refute these claims.
It said that reports indicating approval of financial bids by Government of India (GOI) in the Air India disinvestment case are incorrect and that the media will be informed of the decision when it is taken.
Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect. Media will be informed of the Government decision as and when it is taken: Secretary, Department of Investment and Public Asset Management, GoI pic.twitter.com/PoWk7UceF5
— ANI (@ANI) October 1, 2021
The Tata Group is said to have been amongst the forerunners to purchase the carrier and last month had given their bid. Amongst the other bidders was Ajay Singh, the founder of SpiceJet, claimed reports. The government will be disinvesting its stake of 100% in Air India Express and Air India, along with its stake of 50% in AISATS, the ground handling company, alleged reports.
Nirmala Sitharaman, the Union Finance Minister, Piyush Goyal the commerce minister and Jyotiraditya Scindia, the aviation minister, are claimed to have been the committee members who examined the bids. Based on sources, Air India’s reserve price is anticipated to be between Rs 15,000-20,000cr, cited narratives.
Air India was originally called Tata Airlines and was set up in 1932 by JRD Tata a revered industrialist and philanthropist. Interestingly, he was also the first licensed pilot in India. It was in 1947, near India’s Independence that the airline was nationalized, state accounts.
The Tata Groups were amongst the preferred one’s to purchase the airline since the country’s foremost conglomerate can provide considerable amounts into Air India and remodel it. Jitender Bhargava, former director of Air India in his earlier conversation with Bloomberg had mentioned that the Tatas have been extremely passionate about Air India. At present, Tata in partnership with Singapore Airlines is operating the airline, Vistara.
Whilst the sale process for the stake had commenced in January 2020, owing to the coronavirus pandemic, it faced hindrances. The government in April 2021, requested potential buyers to make their bids. In the initial expression of interest in December 2020, Tata Group was amongst the many who expressed their desire.
According to accounts, if Air India wins the bid it will have power over 4,400 and 1,800 domestic and international landing, parking spots at domestic airports respectively with 900 slots in international airports.
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