HIGHLIGHTS:

  • · The organization competed with SpiceJet promoter Ajay Singh
  • · Sources said that the bid submitted by Tata Son’s was much higher than the minimum reserve price set by the government
  • · For the last three years, the government failed to draw any bids, which led to the loosening of the rules and regulations

Tata Son’s have won the bid on taking over the debt-laden state-run Indian Airlines. According to reports, a panel of ministers has accepted a proposal, recommending the takeover by the organization. However, Tata Son has refrained from making any comments on the issue.

A bid for taking over the airline was submitted by SpiceJet promoter Ajay Singh as well. A confirmation has come from the government sources that the bid submitted by Tata Son’s was higher. Earlier, the government has finalized a minimum reserve price for the airline, keeping in mind the slots and brand value in foreign airports and the future cash flow projection.

Indications have arrived from sources that the final bid submitted by the Tata Son’s, amounted to Rs. 3000 crore, which was more than the minimum reserve price set by the government. The government failed to draw any bids three years ago, with an effort to auction the majority stake. This led to the loosening of the terms.

The deadlines were also extended by the government a number of times, in light of the Covid- 19 pandemic situation. Other than the winning organization (Tata Son’s), the finance ministry and Air India have also refused to comment on the issue immediately.

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