Home India Tata officially takes over Air India, group chief Chandrasekaran says ‘totally delighted’

Tata officially takes over Air India, group chief Chandrasekaran says ‘totally delighted’

After a competitive bidding process, the Centre had on October last year sold the airline to Talace Private Ltd, a subsidiary of the Tata Group's holding company, for Rs 18,000 crore.

Representational image of Air India | Dhiraj Singh | Bloomberg

New Delhi: The government on Thursday officially handed over Air India to the Tata Group.

Tata Sons chairman N Chandrasekharan said the group is very happy to have Air India back in its fold.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey told reporters that Air India has been handed over to Talace Private Limited, a subsidiary of the Tata Group’s holding company, which is the successful bidder.

“Now, the new owners (of the airline) are Talace,” Pandey noted.

Speaking to reporters here, Chandrasekharan said, “We are totally delighted that the takeover process of Air India is complete.” “We are very happy to have Air India back in the Tata group. We look forward to working with everyone to create a world-class airline,” he added.

After a competitive bidding process, the government had on October 8 last year sold Air India to Talace Private Limited for Rs 18,000 crore.

“The Air India strategic disinvestment transaction has been completed today with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner (M/s Talace Pvt Ltd, a wholly owned subsidiary of M/s Tata Sons Pvt Ltd), retaining debt of Rs 15,300 crore in Air India and AIXL and transferring shares of Air India (100% per cent shares of Air India and its subsidiary AIXL and 50 per cent shares of AISATS) to the Strategic Partner,” the finance ministry said in a statement.

Tatas beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier.

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.


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