English
Air India Disinvestment: Soon after announcing that Tata Sons has won the bid for Air India, the Central government on Friday listed a number of conditions before Tata Group and said the company cannot sack the employees of the national carrier at least for one year. However, the group can offer them VRS in the second year.
Giving further details, DIPAM Secretary Tuhin Kant Pandey said the Tatas cannot transfer Air India brand or logo for at least 5 years. However, the group can transfer to only Indian person after 5 years, he added.
He said the Central government has put in Rs 54,584 crores since 2009-10 as cash support and Rs 55,692 crores as guarantee support for Air India which is a total of Rs 1,10,276 crores.
The winning bidder (Tata Sons) will retain all employees for the period of one year. In the second year, if they aren't retained, they will be offered VRS by the winning bidders: Rajiv Bansal, Secretary, Civil Aviation pic.twitter.com/G2pDPfPqeF
— ANI (@ANI) October 8, 2021
He also added that the Tata Sons’ winning bid of Rs 18,000 crore for Air India is higher than the reserve price of Rs 12,906 crore set by the government.
After almost 68 years, Air India went back to the Tatas as the group won the bid to acquire the national airline offering Rs 18,000 crore.
Notably, Tata Sons has beat SpiceJet promoter to bag Air India. The DIPAM secretary said Tatas’ bid of Rs 18,000 crore comprises taking over of 15,300 crore of debt and paying the rest in cash.
He said a group of ministers comprising Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia has cleared the winning bid for Air India on October 4.
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