Last Updated on Nov 15th, 2023 by Ankita Awasthi, Leave a Comment
Last week, the news of ‘Tata Sons acquiring the national carrier Air India was floating across the country. The reported acquiring was processed through submitting the final and highest bid. The update was believed to be sourced by an unknown government official as an off-record revelation.
The news was a hit because it started being recognized as ‘Air India completing its full circle of life.’ The airline was initially owned by none other than this salt-to-software conglomerate: Tata Sons and hence the tagline was stealing such massive attention.
Submitted on the 15th of September, 2021, the final bid by the Tata Sons Company was reported to be the highest. This unknown source revealed that all the entire Air India disinvestment formalities shall be accomplished by December 2021.
Apart from the unknown sources, former Air India director Jitendra Bhargava was seen sharing further on the bidding event with Bloomberg TV. Expressing that the Tata Sons have financial capability to refurbish the airlines, Mr. Bhargava implied why Tatas should get the AI’s nod from the government. He further added, “Tatas have been very, very passionate about Air India,” hinting why he personally believes this to be a correct decision.
Well, Tata’s bid submission has not been disclosed yet but it is believed that the Company has decided to include the indemnity clause in the taking over the process. The clause has been specially included to avoid the unwanted company share claims later. In fact, the national carrier bid was itself brought out at the enterprise value in lieu of the equity value.
The company seems affirmative to win back the AI. According to the reports, 200+ Tata Groups personnel are concentrated to work upon the attainment of this bid.
Earlier, the Tatas had announced that if they win the Air India bid successfully, they’ll plan to create one entity under which all their airline business shall be merged.
Due to the Covid-19 pandemic’s circumstantial restrictions, the airline company had to face a gushing debt increase in the last two years. The debt is believed to be around Rs 40,000 crore. Nevertheless, the government has planned to sell out the company with Rs 23,000 crore to the bid winner.
The media reports claiming ‘Tata Sons Company Wins Back Air India’ was blatantly denied by the government on Friday. They further clarified that the bid evaluation is still in process and the final bid winner to acquire debt-laden carrier Air India shall be announced after the decision making.
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. pic.twitter.com/PVMgJdDixS— Secretary, DIPAM (@SecyDIPAM) October 1, 2021
“Media reports indicating approval of financial bids by the Government of India in the AI disinvestment case are incorrect. Media will be informed of the Government’s decision as and when it is taken,” the Department of Investment and Public Asset Management (DIPAM) secretary announced on Twitter.
However, it is true that the government of PM Mr. Narendra Modi has announced to sell its complete interest in the loss-making airline, which had been taken care by the government since 2012.
Ankita Awasthi has been a content writer for over half a decade now. She seeks to satiate her writing urge by charting creative blogs with up-to-the-minute information. In true wordsmith spirit, she believes that a creative head never sleeps! Her blogs constantly aspire to inspire readers to live their travel dream. Her writing genre covers Indian tourism destinations, offbeat locales and travel guides with focus on its rich art history, culture, heritage, nature trails and travelling attributes.