Air India bidding: Life comes full circle for Tatas
Life has come full circle for the Tatas. What was started by
JRD Tata is now being completed by Ratan Tata.
A homecoming of sorts, the airline founded by JRD Tata,
India’s first licensed pilot who piloted Air India’s (then Tata Airlines) first
flight in 1932, will now be operated by the Tatas once again, according to
sources.
The government will divest its 100 per cent stake in Air
India, and sources have told India Today that the disinvestment will be
complete by December this year.
Air India’s reserve price was likely to be in the range of
Rs 15,000-20,000 crore.
A panel of ministers has accepted the proposal.
However, the Department of Investment and Public Asset
Management (DIPAM) Secretary tweeted, "Media reports indicating approval
of financial bids by Government of India in the AI disinvestment case are
incorrect. Media will be informed of the Government decision as and when it is
taken."
Experts say this handover will be a victory for Prime
Minister Narendra Modi, who has embarked on a bold privatization plan to plug a
widening budget deficit.
This deal will also save the government crores of rupees and
end a decades-long struggle to offload the money-losing carrier
Source Indiatoday
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