Earlier this month, Talace Pvt Ltd, part of the Tata group, emerged as the winning bidder for Air India with a bid worth Rs 18,000 crore.
The total debt on the books of Air India was Rs 61,000 crore, of which the government retained Rs 46,000 crore.
The deal, which is expected to be completed by December-end, also includes sale of Air India Express and ground handling arm AISATS.
If its bid is accepted, Tata will take over the national carrier they once founded. Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline in 1932.
Salt-to-software conglomerate Tata Group was among the 'multiple' entities that had put in preliminary bids for buying loss-making Air India in December last year.
The rather successful airline's fortunes turned after its merger with the domestic flight operator Indian Airlines.
The government plans to sell 76 per cent stake in Air India, according to the preliminary information memorandum released today on strategic disinvestment of the national carrier.
The Parliamentary Standing Committee on Transport, Tourism and Culture concluded that the government should review its decision to privatise or disinvest Air India
To revive the loss-making national carrier, the government is working on the modalities for its strategic disinvestment.
The government moved an inch closer to privatisation of Air India by holding the first high-level meeting over the issue on Friday.
Air India's largest employees' union will hold its general body meeting here this week to "organise its members for a movement" against the government's decision to privatise the carrier.