New Delhi: The central government on Thursday officially handed over Air India to the Tata Group, as the Centre transferred 100 per cent shares in Air India to the Tatas wholly owned subsidiary Talace Pvt Ltd along with management control.
Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said Air India has been handed over to Talace Private Limited, a subsidiary of the Tata Group’s holding company, which is the successful bidder.
“Now, the new owners (of the airline) are Talace,” Pandey noted.
Tata Sons Chairman N Chandrasekaran said the group is very happy to have Air India back in its fold, almost 69 years after it was taken from the Mumbai-based conglomerate.
According to PTI, Chandrasekharan told reporters, “We are totally delighted that the takeover process of Air India is complete. We are very happy to have Air India back in the Tata Group. We look forward to working with everyone to create a world-class airline,” he added.
The Centre on Thursday notified an agreement between Air India and a special purpose vehicle (SPV) for transferring the carrier’s non-core assets, marking another step in the national airline’s takeover by the Tata Group.
Ahead of the official handover of Air India, N Chandrasekaran called on Prime Minister Narendra Modi in New Delhi on Thursday. Tatas won the bid with a whopping Rs 18,000 crore, Leaving behind its competitor SpiceJet.
This meeting is the final call, in aviation lingo, that now Air India is no longer a government of India enterprise, and has become a private entity.
The complete payment of Rs 2,700 crore has been received by the government and it has transferred the shares, he said.
The entire debt of Rs 15,300 crore has also been accepted by the Tatas. All the processes are complete, he added.
Pandey said the new board is holding a meeting now.
“So, we have handed (over the airline to) them. As we speak, they (Tata Sons) are the new owners,” he said.
Air India was started by the Tata Group in 1932. However, after the country got independence, the airline was nationalised in 1953 by then prime minister Jawaharlal Nehru.