Tata Sons’ Air India takeover: Govt signs share purchase agreement for Rs 18,000 crore sale

Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM) had earlier told CNBC-TV18 that the Air India disinvestment has been an extremely complicated one.

“One of the reasons is that a huge amount of public funds, taxpayers funds, have gone into supporting Air India over the years in their turnaround plan and financial restructuring plan (FRP) which was sanctioned,” he said.

The divestment brings a much-needed boost to the aviation sector that has been affected by COVID-19, Pandey said. Calling it a win-win situation for taxpayers, employees and other stakeholders, he further explained that the private management will infuse a lot of funds in the airlines, add more assets and restructure the business of Air India.

Air India Director- Finance, Vinod Hejmadi, Civil Aviation Ministry Joint Secretary Satyendra Mishra and Supraprakash Mukhopadhyay from the Tata Group signed the share purchase agreement (SPA).

Tata Sons would now have to take various regulatory clearances, including from the Competition Commission of India (CCI), before the actual handover of the airline takes place by December end.

The government is divesting its 100 percent ownership of Air India and Air India Express along with its 50 percent stake in ground-handling company AISATS.