October 1 (Businesshala) – India’s Tata Sons has been chosen as the winning bidder for debt-ridden state-run Air India, Businesshala said. informed of on Friday.
The report said a panel of ministers accepted a proposal by Ajay Singh, promoter of India’s airline operator SpiceJet Ltd (SPJT.NS), before a proposal by officials recommending the software group to salt.
A Tata Sons spokesperson declined to comment. A finance ministry spokesperson did not immediately respond to a Businesshala message seeking comment, while Air India declined to comment.
Prime Minister Narendra Modi’s government has been pushing to sell its entire interest in the loss-making airline since 2012.
Officials have said the government loses about 200 million rupees every day to running the national carrier, causing a loss of more than 700 billion rupees ($9.53 billion).
An attempt to auction a majority stake nearly three years ago led to no bidding, forcing the government to relax the conditions. It had extended the deadline several times due to the pandemic.