Last week various media outlets floated news of Tata Sons winning the final bid for Air India after which the Government of India (GoI) issued a clarification that a final decision had not been made in this regard.
Finally, in a statement given by the Ministry of Aviation (GoI) on 8th October 2021, Tata Sons was announced the complete stake owners of Air India. Tata Sons will pay ₹ 18,000 crore to acquire Air India from the Government. Out of the total money, 15% would go to the Government and the rest will go in partially clearing debt.
The reserve price for the Air India divestment bid was fixed at ₹ 12,906 crore, and the winning bidder Talace Pvt. Ltd. (a SPV created by Tata Sons) will take ₹ 15,300 crore debt. As per a Ministry of Aviation statement, acquirer will also retain all Air India employees for one year and can offer VRS in the 2nd year.
Air India was founded by JRD Tata in 1932 (as Tata Airlines), was nationalized around the time India gained independence in 1947.