Advertisement
Thursday, Dec 02, 2021
Outlook.com
Outlook.com

Tata Group Buys Air India For ₹18,000 Crore

The announcement was made by the secretaries of DIPAM and the ministry of civil aviation.

Tata Group Buys Air India For ₹18,000 Crore
Representational Image | PTI
Tata Group Buys Air India For ₹18,000 Crore
outlookindia.com
2021-10-08T20:04:56+05:30

The government Friday announced Tata Sons emerged as the winning bidder for Air India. The announcement was made by the secretaries of DIPAM and the ministry of civil aviation. DIPAM is the department that looks into the disinvestment of government assets and holdings. 

It was further informed that the transaction is expected to close by December 2021.

Chairman Emeritus of Tata Sons, Ratan Tata tweeted about the development. He said, "Welcome back, Air India". 

Other important highlights: 


1. Air India's total debt as of August 31, 2021, stands at 61,562 crores. The winning bidder would take over Rs 15,300 crore of the debt. 

2. Reserve price for bid was fixed at Rs 12, 906 crore

3. Current losses of Rs 20 crore per day will now be Tata Group's financial consideration

4. All government benefits provided accrued to current employees will continue for one year

5. Eight logos or brand names of Air India cannot be transferred in the next 5 years. No transfer allowed to any foreign entity even after expiry of 5 years

6. Business continuity clause would exist for three years. Winning bidder being given complete operational freedom.

7. Air India has 12,085 employees in total and 8,084 permanent employees

8. Restriction for government-employees to compulsorily travel in Air India to be taken away

(This is a breaking story. More details to follow)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Kashmir Statehood: Omar Abdullah Goes All Guns Blazing In Jammu Road Shows

Kashmir Statehood: Omar Abdullah Goes All Guns Blazing In Jammu Road Shows

National Conference leader Omar Abdullah hit the road and held multiple rallies in Jammu in a first since the abrogation of Article 370 despite no elections in sight in J&K.

Beasts Of Burden: Why Maharashtra Farmers Are Abandoning Their Cattle

Beasts Of Burden: Why Maharashtra Farmers Are Abandoning Their Cattle

With farmers in Maharashtra reeling under crop failures and mounting debts, rearing milch cattle has not remained a profitable option.

Mumbai Test: Who Will Kohli Replace In IND's XI Vs NZ?

Mumbai Test: Who Will Kohli Replace In IND's XI Vs NZ?

With Virat Kohli making a return and rain forecast in Mumbai, India will be forced to make changes. Here's a look at India's likely XI.

Maharashtra Farmers Look For 'Love' Amid Continued Woes And Degrading Social Status

Maharashtra Farmers Look For 'Love' Amid Continued Woes And Degrading Social Status

Maharashtra’s social fabric is undergoing a tough change. While the sons of farmers are finding it an uphill task to get brides, their sisters do not want farmers as husbands.

Advertisement