'Incorrect': Govt Refutes Reports of Tata Sons Having Won Bid for Air India
The bid submitted by Tata Sons was Rs 3,000 cr more than the minimum reserve price set by the government committee.
(Disclaimer: An earlier version of this article quoted a Bloomberg article to report that Tata Sons had won the bid for Air India. It has been updated to reflect the government's denial of the same.)
The Government of India on Friday, 30 September, refuted the claims of Tata Group's re-acquisition of Air India, which had been widely reported in the media earlier during the day.
"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."Secretary, Department of Investment and Public Asset Management, GoI
Bloomberg News had reported earlier on Friday that a panel of ministers accepted a proposal recommending Tata Sons' bid for money-losing state-run airline Air India.
Tatas Passionate About Air India: Former Director
On Thursday, former Air India director Jitender Bhargava had said that Tata Group will likely receive the government’s nod considering how the company is capable of revamping the flag carrier.
“Tatas have been very, very passionate about Air India," he was quoted as saying by Bloomberg.
Notably, business tycoon JRD Tata had founded the airline and had piloted the first flight in 1932.
The group had submitted the final bid for the airline on 15 September. Sources indicated that the bid submitted by Tata Sons was Rs 3,000 crore more than the minimum reserve price set by the government committee, India Today reported.
Spice Jet promoter Ajay Singh has also submitted a bid for the airline, as per reports.
The government loses nearly Rs 20 crore every day to run the national carrier, which has accumulated losses of over Rs 70,000 crore, officials have said, Reuters reported.
(With inputs from Bloomberg, India Today, and Reuters)
Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.