Tata Sons Chairman N. Chandrasekaran announced on Thursday afternoon that the company's takeover of national carrier Air India was complete.
Chandrasekaran met Prime Minister Narendra Modi before going to the Air India headquarters in Delhi.
Chandrasekaran said he was “extremely happy” that Air India was back with the Tata Group. Tata had started Air India in 1932. It was nationalised in 1953.
Tuhin Kant Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), was quoted by ANI as saying, “The formalities have been completed. The Air India disinvestment process is closed. The shares have been transferred to Talace Pvt Ltd, which is the new owner of Air India.”
Chandrasekaran said, “We're totally delighted that this process is complete and happy to have Air India back in the Tata Group. We look forward to working with everyone to create a world-class airline.”
Earlier, NDTV reported that Air India's board was likely to resign on Thursday and nominees of Tata Group may replace government members.
Tata Group committed to making Air India a world-class airline: Chandrasekaran
Tata Group is committed to making Air India a world-class airline, Tata Sons Chairman N. Chandrasekaran said on Thursday.
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"We are excited to have Air India back in the Tata Group and are committed to making this a world-class airline. I warmly welcome all the employees of Air India to our Group, and look forward to working together," Chandrasekaran said in a statement.
The group also said it philosophically agrees with "the Prime Minister's vision for the aviation sector, of making it affordable and ensuring it contributes to boosting 'Ease of Living' for citizens".
Meanwhile, a consortium of lenders led by State Bank of India (SBI) has agreed to provide loans to Tata Group for the smooth operations of loss-making Air India. Sources told PTI the SBI-led consortium had agreed to grant both term loans and working capital loans depending on the airline's requirements.
All large lenders—including Punjab National Bank, Bank of Baroda and Union Bank of India—are part of the consortium, they added.
A unit of the holding company of the salt-to-software conglomerate had offered Rs 18,000 crore last year as part of its winning bid—Rs 15,300 crore for Air India's existing debt and Rs 2,700 crore to be paid as cash to the government.
The government on January 24 notified the agreement between Air India and AI Assets Holding Ltd (AIAHL), a special-purpose vehicle, for transfer of non-core assets.
As on August 31, 2021, Air India had a total debt of Rs 61,562 crore. Around 75 per cent of this debt, or Rs 46,262 crore, will be transferred to AIAHL.
Besides, non-core assets of Air India, including land and building, valued at Rs 14,718 crore, are also being transferred to AIAHL.
Tatas would not get to retain non-core assets such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.
Of the 141 Air India aircraft that Tatas would get, 42 are leased planes while the remaining 99 are owned.
With inputs from PTI
