On 8 October, Tata Sons bought Air India for 18000 crores.
Before handing over the loss-making airline to the Tata group, the government will transfer its fuel bills and other dues of the supplier to the SPV of around Rs 16,000 crore. A senior official gave this information to ‘Bhasha’. Air India Assets Holding Limited (AIAHL), which is handling Air India’s non-core assets such as land and buildings, will also account for 75 per cent of the airline’s debt, which the Tata group is not taking responsibility for.
Apart from the debt, AIAHL will also have additional liabilities, including dues from oil companies, airport operators and vendors, said Tuhin Kant Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), which runs the government’s privatization programme. Pandey said he does not expect these dues to rise much by the end of December, as the government will continue to support the airline’s operations by providing Rs 20 crore daily funding.
Air India assets to be transferred
Before handing over Air India to Tata, the government will work on Air India’s books for a period of four months (September-December) and any remaining liabilities will be transferred to AIAHL. The total outstanding on Air India as on August 31 was Rs 61,562 crore. Out of this, Tata Sons Holding Company Tales Pvt Ltd. 15,300 crore will be taken and the remaining Rs 46,262 crore will be transferred to AIAHL. In addition, non-core assets including Air India’s land and building will also be transferred to AIAHL. Its value has been estimated at Rs 14,718 crore.
Tata Sons gets Air India
Two days ago, Tata Sons has won the bid to acquire the debt-ridden state-run airline company Air India. Tata Sons acquired 100 per cent stake in the airline which was founded 90 years ago by bidding for Rs 18,000 crore. The government has approved the bid of Tata Sons. Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) of the Central Government, which is responsible for the privatization of state-run companies, said that a Special Unit (SPV) of Tata Sons, the holding company of the Tata Group, has emerged as the successful bidder.
Rs 18,000 crore bid
In the race to take over Air India, Tata Sons overtook SpiceJet promoter Ajay Singh-led conglomerate. DIPAM’s secretary said Tata’s bid of Rs 18,000 crore includes taking a loan of Rs 15,300 crore and paying the rest in cash. The government is selling its 100 per cent stake in the state-owned airline, which includes Air India’s 100 per cent stake in AI Express Ltd and 50 per cent stake in Air India SATS Airport Services Pvt Ltd. Civil Aviation Minister Jyotiraditya Scindia on Friday said the sale of Air India to the Tata group marks a new dawn for the airline and hoped that Air India will continue to bring people closer through its successful operations.
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