Air India to be acquired by Tata Sons in a bid of Rs 300 cr
Mumbai – Tata Sons are set to take over Air India again, though the final confirmation is awaited from the government. This will mark the end of the government’s hold over an airline that for decades defined the lofty ambitions of a newly independent nation. It wasn’t an easy decision to make; a panel of ministers accepted a proposal from bureaucrats, who recommended the offer from another entrepreneur, Ajay Singh.
In a bid of Rs 3000 crore, Tata Sons will be acquiring government-run Air India today. The group submitted their final bid for the airline on 15 September and has emerged as the highest bidders for the acquisition so far.
It is believed that this takeover is a significant victory for Narendra Modi, who has embarked on a bold privatization plan to plug a widening budget deficit. It also puts an end to a decades-long struggle to offload the money for a flag air carriers which was not making a profitable business.
Multiple governments have tried to sell the airline though it was not successful. It began as Tata Airlines in 1932 but those attempts were either met with political opposition or a lack of interest from potential buyers.
It means like returning home for Tata Sons, who started their empire from salt making and now are a tech giant of the country. This recommendation means it’s coming back to an asset it started almost 90 years ago.
Looking back at the journey, it was Jehangir Ratanji Dadabhoy (JRD) Tata who founded the airlines with the small capital of Rs 2 lakh. And from them, he developed a piqued interest in aviation.