Air India disinvestment: Tata Sons winning bid for AI incorrect, says DIPAM

New Delhi: The Secretary, Department of Investment and Public Asset Management has refuted claims that approval of financial bids by Government of India in the AI disinvestment case has been awarded to Tata Sons.

The Secretary, Department of Investment and Public Asset Management, has 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."

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. pic.twitter.com/PVMgJdDixS — Secretary, DIPAM (@SecyDIPAM) October 1, 2021

Earlier in the day it was reported by several media houses quoting sources that India`s Tata Sons has been selected as the winning bidder for the debt-laden state-run airline Air India. The Tata Group founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.

A panel of ministers accepted a proposal from officials recommending the salt-to-software conglomerate ahead of an offer from Ajay Singh, promoter of India`s airline operator Spicejet Ltd, a Bloomberg report said on Friday.

Prime Minister Narendra Modi`s government has been pushing to sell its entire interest in the loss-making airline, kept aloft by a bailout since 2012.

The government is seeking to sell 100 per cent of its stake in the state-owned national airline, including Air India's 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.

The stake sale process, which begun in January 2020, faced delays due to the COVID-19 pandemic. In April 2021, the government asked potential bidders to put in financial bids. The last day for placing financial bids was September 15.

With Agency Inputs