The government on Monday signed the share purchase agreement with Tata Sons for the sale of national carrier Air India for Rs 18,000 crore.
This comes after the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of the Tata Sons, to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt. Following that, on October 11 a Letter of Intent was issued to the Tata Group confirming the government's willingness to sell its 100 percent stake in the airline. "Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
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). Now, various regulatory clearances, including from the Competition Commission of India (CCI), would have to be taken by Tata Sons 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.