Tata Sons wins Air India Bid? Govt claims reports are 'Incorrect'

New Delhi: There was report that Tata Sons has won the Air India bid, but bow Govt reacted on these reports and claimed that no official statement made yet. According to a Bloomberg report, the Tata Group will be the new owner of Air India. The report said that a panel of ministers has accepted the proposal to take over the airline. An official announcement is expected in the coming days.

Tata sons and Air India bid:

After the government's deal with Tata, There are chances that the airline will have a 'Ghar Wapsi' after 67 years. The Tata group started Air India in October 1932 under the name Tata Airlines. After the independence of the country in the year 1947, the need for a national airline was felt. In such a situation, the Government of India acquired 49 percent stake in Air India. After this, in 1953, the Government of India passed the Air Corporation Act and then bought a majority stake in the company from the Tata group.

Rs 60074 crore debt on the company:

The company had a debt of Rs 60074 crore as on 31 March 2019. The company is expected to make a loss of Rs 9,500 to Rs 10,000 crore for the quarter ended March 2021. The company that buys Air India will have to pay only Rs 23,286.5 crore. The remaining debt will be transferred to the specially created Air India Asset Holdings Limited. This means that the rest of the debt will be borne by the government itself.

The deal also includes Air India's head office in Mumbai and Airlines House in Delhi. The market value of the Mumbai office is over Rs 1,500 crore. At present, Air India controls 4,400 domestic flights and 1800 landing and parking slots abroad.

According to the Economic Times report, the Tata Group's bid is about Rs 3,000 crore more than the reserve price fixed by the government. Tata's bid is nearly Rs 5,000 crore more than the one put up by SpiceJet chairman Ajay Singh. The report further said that government sources declined to comment on reports that put the reserve price at Rs 15,000-20,000 crore.

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