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