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‘Incorrect’: Government denies report on Tata Sons winning Air India bid

Bloomberg News earlier had reported that the salt-to-software conglomerate would re-acquire the national carrier and will be again flying under the Tata Group after a gap of 68 years.

Incorrect Government denies report on Tata Sons winning Air India bid-dnm
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New Delhi, First Published Oct 1, 2021, 4:00 PM IST
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The Finance Ministry has denied media reports that Tata Sons has won the bid for the debt-laden Air India and said it is incorrect.

Media reports stated that a panel of ministers accepted a proposal from officials which recommended Tata Sons, ahead of SpiceJet Limited promoter Ajay Singh's bid.

"Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect," the ministry said in a tweet. “Media will be informed of the Government decision as and when it is taken,” it said.

 

Bloomberg News earlier had reported that the salt-to-software conglomerate would re-acquire the national carrier and will be again flying under the Tata Group after a gap of 68 years.

Earlier this month the ministry said it had received bids for the airline, but did not name the bidders.

Tata Group and SpiceJet chairman Ajay Singh had bid for the embattled state-run Air India in his private capacity earlier this month. 

In December 2020, the government had invited expression of interest for the divestment of Air India. Four bidders had entered the race to take over the beleaguered airline, but Tata Group and Spicejet CEO Ajay Singh were the only ones to make it to the final stage, NDTV reported.

As per the Air India EoI floated by the Department of Investment and Public Asset Management (DIPAM) in January 2020, the government incurs losses nearly Rs 20 crore every day to run the national carrier, which has accumulated losses of over Rs 70,000 crore ($9.53 billion), officials have said.

The airline, which was formed by the Tatas as a mail carrier, was piloted and was the first flight inaugurated by Indian aviation in 1932.

 

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