Now Tata Air India's new 'Maharaja'

(PTI) New Delhi, Dt

Tata Sons is finally gearing up to take over the helm of its self-founded Air India once again in three years. Tata Sons has been offered Rs 100 crore to sell 100 per cent stake in debt-ridden state-owned airline Air India. 15,000 crore has been accepted. The government on Friday officially announced that Tata Sons had won the bid. The information was leaked to the media just days before the government's announcement. However, the government at the time announced that no decision had been taken. Tata Sons unit Tales Pvt. Ltd. to buy 100 per cent stake in Air India Ltd. Rs. 15,500 crore to take over debt and Rs. 2,500 crore in cash. The deal is expected to be completed by December 2021.

Ajay Singh, the promoter of SpiceJet, bought Air India for Rs. 16,100 crore. The government has agreed to sell 100 per cent stake in the state-owned airline for Rs. It had set a reserve price of Rs 15,606 crore. October 8 is becoming a historic day for the Tata Group, which makes everything from salt to software.

The Tata group has won a bid to regain the helm of the Air India company it founded after nearly three years. With the victory of this bid, the dominance of the Tata group in the Indian aviation industry will now increase. The Tata Group now owns three airlines in the country, Air Asia and Air India.

This was the first complete privatization of a state-owned company after 2006-07. With the acquisition of Air India, the Tata Group has acquired hundreds of aircraft, thousands of trained pilots and crew, as well as attractive land and parking slots around the world. However, Tata Sons' transaction of Rs. Excluding non-core assets, including land and buildings, worth Rs 15,616 crore. The funds will be transferred to the government's Air India Asset Holding Limited.

On the country's largest government airline, Rs. The debt was Rs 21.5 crore. The third attempt was successful in selling the debt-ridden airline to the government. Earlier in 2013, the government had offered to sell Air India, but no company took interest. The government had also invited bids to sell the airline in October last year after receiving feedback from potential investors.

This time, the government changed the rules regarding transfer of Air India's debt to investors. The new investor was given the facility to fix the debt ratio in the ratio of 9:12 for takeover. Air India has been mired in debt since its merger with local operator Indian Airlines in 2006.

With the takeover of the airline, Tata Sons will have control of 2,500 domestic and 1,200 international landing and parking slots at domestic airports as well as 500 slots at overseas airports. In addition, Tata Sons will have 100 per cent control of the low-cost Arm Air India Express and 50 per cent control of AISATS, which will provide cargo and ground handling services at most Indian airports.

The combined debt of Air India and its affiliates is Rs. 21.5 crore, of which Tata's Rs. Will take over debt of Rs 12,500 crore. The remaining Rs. Debt of Rs 4.5 crore Special Purpose Vehicle Air India Assets Holding Ltd. (AIAHL) will be transferred. Pandey said Tata's bid was approved by the Group of Ministers under the Air India Specific Alternative Mechanism, led by Home Minister Amit Shah, on October 4.

Jahangir Ratanji Dadabhoy (JRD) Tata founded Tata Airlines, the country's first airline in the year 19. Tata Sons' aviation division was listed as Air India in the 18th and Air India International launched flights to Europe in the 18th. International Services was one of the first public-private partnerships in India, with the government holding 5 per cent, Tata the 5 per cent and the public holding the rest. However, in the year 19, the government nationalized Air India.