On Thursday, Air India was officially handed over to the Tata Group, nearly 69 years after it was nationalized. N Chandrasekaran, Chairman of Tata Sons, met with Prime Minister Narendra Modi ahead of the handover. The Tata Group was successful in its effort to purchase the airline it founded in 1932 for Rs 18,000 crore. A monetary payment of Rs. 2,700 crore has been done.
Air India is handed back to Tata
“The formalities are now finished. The disinvestment process for Air India has come to an end. Air India’s shares have been transferred to Talace Pvt Ltd, which is the new owner “Secretary, Department of Investment & Public Asset Management, Tuhin Kant Pandey (DIPAM).
In October of last year, the government signed a share purchase agreement with the Tata Group to sell national carrier Air India for Rs 18,000 crore.
On Thursday, the Tata Group is poised to gain full ownership of the airline, which was formed in 1932. Once the handover process is completed, the cash portion of the agreement will be completed.
The Tata Group would pay Rs 2,700 crore in cash and assume the airline’s debt of Rs 15,300 crore. The agreement also involves the sale of Air India Express and AISATS, the company’s ground handling subsidiary.
The transaction was supposed to be completed by December 2021, but it was later postponed until January 2022 due to longer-than-expected administrative processes.
After 67 years, Air India will be welcomed back into the Tata family. In October 1932, the Tata Group established Air India as Tata Airlines. The airline was nationalised by the government in 1953.
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