NEW DELHI: Tata Sons is set to take over Air India as it has emerged the top bidder for the debt-laden state carrier. An official announcement will be made after the Union cabinet clears the deal, sources said.
"The government received all the bids on the last day for accepting bids - September 15. Tata Sons proposed the highest price to take over the airline. After the Cabinet nod is obtained, an announcement will be made," a senior finance ministry official told this paper.
However, the official refused to divulge any details about the exact bidding amount except that "it is substantial". Apart from the Tata Group, SpiceJet chairman and MD Ajay Singh had also placed financial bids for the airline in his personal capacity.
After the news of Tatas winning the bid broke, the finance ministry issued a clarification. "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," said DIPAM Secretary Tuhin Kanta Pandey.
Senior officials in the know of the process claim that one of the reasons why the government did not want to come clean on the issue is because the Tata Group had proposed to acquire around 15 per cent of the airline's total debt with certain conditions relaxed, which needs top level negotiation.
Air India had accumulated losses of Rs 70,820 crore as on March 31, 2020, according to the latest available numbers. The government wants to divest its 76 per cent stake in Air India, which is crucial to achieve the Budget target of raising Rs 1.75 lakh crore from divestment.