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DIPAM denies reports of Tata Sons winning Air India bid

The DIPAM has denied media reports about Tata Group winning the bid for Air India
DIPAM denies reports of Tata Sons winning Air India bid
DIPAM denies reports of Tata Sons winning Air India bid
  • Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect, said the DIPAM Secretary in a tweet
  • Tata Group and SpiceJet Chairman Ajay Singh are the only two entities in the fray for Air India

New Delhi: The Department of Investment and Public Asset Management (DIPAM) has denied media reports about Tata Group winning the bid for Air India. “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,” said DIPAM Secretary Tuhin Kanta Pandey in a tweet on Friday. The Air India privatisation process is in the last stages and an official announcement by the government can be expected any time.

Tata Group & SpiceJet in fray for Air India

Tata Group and SpiceJet Chairman Ajay Singh are the only two entities in the fray for Air India. Singh has bid for the debt-laden national carrier in his private capacity. The submission of financial bids for Air India’s privatisation closed on September 15. 

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This is the government’s second attempt to sell off Air India. The Centre had tried unsuccessfully to privatise the airline in March 2018. However, this time around, the government has sweetened the deal and offered 100 percent stake in the company to attract investors.

Background

Air India has never made a net profit since its merger with Indian Airlines in 2007. The airline recorded a net loss of Rs 7,982.83 crore in 2019-20, Rs 8,556.35 crore in 2018-19, and Rs 5,348.18 crore in 2017-18. 

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