Centre signs share sale pact for Air India

The government on Monday signed the share purchase agreement for Air India’s sale with Tata Sons.

A man walks past a graffiti of Air India airlines on a street in Mumbai, India, October 19, 2021. REUTERS/Francis Mascarenhas

The government on Monday signed the share purchase agreement for Air India’s sale with Tata Sons.

Earlier this month, Tata Sons subsidiary Talace Pvt. Ltd. emerged as the highest bidder for Air India for ₹18,000 crore. Of this, the cash consideration to be paid to the government is ₹2,700 crore, and the remaining ₹15,300 crore is the debt to be taken on by Talace.

Next, there are certain conditions that need to be satisfied by the successful bidder, Air India and the government. It is expected that the transaction would be completed by December, when the government plans to hand over the airline to Talace.