New Delhi: A panel of ministers led by Home Minister Amit Shah is soon expected to give its approval to the sale of Air India to Tata Sons after the conglomerate emerged as the frontrunner to acquire the national carrier, the media reported.
The committee nod will be followed by an approval from the Union Cabinet headed by Prime Minister Narendra Modi. It has been learned that both these processes are expected to be completed as early as this week even as the final negotiations take place between representatives from the government, the airline, and Tata Sons.
The empowered group of ministers led by Shah is known as the Air India-Specific Alternative Mechanism (AISAM). It also includes Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal, and Aviation Minister Jyotiraditya Scindia.
As reported earlier, Tata Sons may be willing to pick up around 15 percent of the airline’s debt load. Although the conditions under which it would be done are yet to be known, sources confirmed that it was a major part of the discussion between the government and the Tata Group.
The government, as part of its current attempt to sell off its 100 percent stake in Air India, had changed the bidding norms in October 2020 and sought bids based on enterprise value. According to the new plan, the successful bidder does not have to absorb any predetermined debt. Air India has a net debt of around Rs 60,000 crore. (Money Control)
