Ghar Wapasi moment for Air India? Centre denies media reports about Tata Sons winning the final bid on Air India

The prominent media house earlier reported that Tata Sons has reportedly won the bid for the debt-laden Air India, the national air carrier that was founded by J R D Tata as Tata Airlines in 1932 and later nationalised by the government in 1953.

 

They added that the panel of ministers headed by Union Home Minister Amit Shah has reportedly accepted a proposal recommending Tata Son's bid for the national air carrier. The members of the ministerial panel comprised Union Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Civil Aviation Minister Jyotiraditya Scindia.

 

However, following the news reports and much drama, the Secretary to the Department of Investment and Public Asset Management (DIPAM) took to social media and cleared the air around the news saying that media reports indicating approval of financial bids by the government in the Air India disinvestment case are "incorrect". It further stated that the media will be informed of the Government’s decision as and when it is taken.

 

The airline was founded by JRD Tata in 1932 as ‘Tata airline’ and was renamed ‘Air India’ in July 1946. It was in July 1953 that the then-Nehru government took over a majority stake in the airline from Tata Sons. At the time, JRD Tata was extremely anguished by the manner Nehru had nationalised Air India without any dialogue or notice.

Tata Sons and Spicejet founder Ajay Singh were the frontrunners to buy the carrier and had submitted their bids last month. According to reports, the government will divest its 100 percent stake in Air India, Air India Express, and 50 percent stake in the ground handling company AISATS. The government also reportedly plans to complete the handover of the airlines to its new owners by December.

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