Tata Group takes over Air India, credits PM Modi’s commitment to reforms
Air India on Thursday came back to the Tata Group as the historic divestment process was finally completed with all formalities concluding successfully. Chairman of Tata Sons N Chandrasekharan met Prime Minister Narendra Modi as the officials started the final handover procedure at the Air India office in New Delhi.
The old members of the board stepped down making place for the new board to take over in a first landmark privatisation move in the last decade.
“Formalities have been completed. Air India disinvestment transaction is closed. ₹2,700 crore has been received by the government. The shares have been transferred to Talace, the new owner. Consideration amount has been received. The debt of ₹1,53,00 crore has been accepted by the new owner. The new board is currently conducting the meeting,” Tuhin Kanta Pande, secretary of the department of investment and public asset management said.
“Today’s disinvestment of Air India is a truly defining movement that will usher in a brighter future for the employees, will help the airlines to expand its wings and soar to greater heights, is a shot in the arm for domestic airlines and will add muscle to the Indian aviation sector,” civil aviation secretary Rajiv Bansal said.
Civil aviation minister Jyotiraditya Scindia said the disinvestment process has been completed in a time-bound manner. “It is indeed noteworthy that the disinvestment process of @airindiain has been brought to a successful conclusion in a time-bound manner. This proves the govt’s ability, and the resolve to carry out disinvestment effectively in non-strategic sectors in the future,” the minister tweeted wishing the best to the new team taking the rein of Air India.
The Tata Group issued a statement acknowledging PM Modi’s commitment to reforms and faith in India’s entrepreneurship spirit, which made this historic transition possible. “Our Prime Minister has in action demonstrated what his commitment to minimum government, maximum governance means.”