Saturday, 21 May, 2022

Air India returns to Tata Group

New Delhi: The debt-laden Air India finally returned to its founding father the Tata Group, India's biggest conglomerate, on Thursday.

The move marked a homecoming for Air India, which was originally launched in 1932 by Tata Group’s former Chairman JRD Tata as the nation's first national carrier, flying mail between Karachi and Bombay during the British ruled undivided India.

It took over two decades and three attempts for the Centre to finally handover its flagship national carrier Air India.

The successful conclusion of the deal, the country's first major privatisation in nearly two decades, is a big victory for the Narendra Modi government.

After the handover of Air India, Tata Sons Chairman N Chandrasekharan said, “We're totally delighted that this process is complete and happy to have Air India back in the Tata Group. We look forward to walking with everyone to create a world-class airline."

The formalities have been completed. The Air India disinvestment process is closed. The shares have been transferred to Telace Private limited which is the new owner of Air India," Tuhin Kanti Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) stated on Thursday.

India's civil aviation minister Jyotiraditya Scindia twittered, “This proves the government's ability to carry out disinvestment effectively in non strategic sector in the future."

Elaborating further on completion of the process DIPAM secretary stated that now the new owners of Air India are Telace. The entire Rs 2700 crores has been received by Government. 

Ministry of Civil Aviation Secretary Rajib Bansal informed that 12,000 employees will now work with TATA.