Air India not sold to Tata Sons yet: Center reveals

New Delhi, Dt

Debt-ridden state-owned airline Air India has once again joined the Tata group after seven years. According to a Bloomberg report, Tata Sons has won the bid for Air India. The group of ministers has given green light to the Tata Group's acquisition proposal on a bid for the sale of Air India. However, the central government has rejected the reports. The government on Friday revealed that media reports about the sale of Air India were false. The media will be informed when a decision is taken on this issue.

A Bloomberg report, citing unnamed government sources, claimed that the group of ministers had accepted the Tata group's proposal for a takeover of Air India. However, the government said media reports on the matter were false. No decision has been taken yet on Air India's bid. The media will be informed whenever a decision is taken in this regard.

In fact, Tata Sons has emerged as the top bidder to acquire Air India, according to a PTI report, but sources said the bid has not yet been approved by a group of ministers headed by Home Minister Amit Shah. Sources said that the financial bids of Ajay Singh, promoter of Tata Sons and SpiceJet Ltd, were opened a few days ago and were examined by a key group of secretaries on the divestment, chaired by the Cabinet Secretary, on Wednesday.

Sources said the bids were evaluated as compared to the reserve price and Tata's bid was the highest. However, the bid will now be presented to a group of ministers headed by Amit Shah formed for the privatization of Air India. The finance ministry and Tata Sons declined to comment on the issue. Meanwhile, Tuhin Kant Pandey, secretary of the Department of Investment and Public Asset Management, said in a tweet that the government has not yet approved Air India's bids.

He tweeted that media reports that the Indian government had approved financial bids in the Air India divestment case were false. Ever since the government announced the sale of Air India, there has been talk in market circles that Tata Sons will buy the company. Tata Sons is also keen to get Air India back. If Tata Sons' bid is accepted, the salt-producing Tata Group will once again become the owner of the company it founded. According to sources, the divestment process of Air India will be completed by December 2021. The government had invited financial bids for Air India. Air India's divestment is also part of the government's disinvestment program. Earlier, the government had tried to sell 5 per cent stake in Air India in 2014, but it did not find a buyer at the time. This time, the government is to sell 100 per cent stake in Air India.