Tata's takeover of Air India is complete now
Air India is back with the Tatas. The government formally handed over the airline to Tata group today, nearly four months after the salt-to-software conglomerate outbid a consortium led by SpiceJet chief Ajay Singh.
Here are 5 key points on Tata's takeover of Air India:
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Tata's winning bid for Air India was Rs 18,000 crore, higher by Rs 2,900 crore from the bid made by the other conglomerate.
Tata has paid Rs 2,700 crore in cash and taken over debt of Rs 15,300 crore.
On August 31, 2021, Air India had a total debt of Rs 61,562 crore. Of this, Rs 46,262 crore is being transferred to a special purpose vehicle, or SPV. The balance debt has been cleared by Tata.
Of the total government debt in the SPV, Rs 14,718 crore is being serviced with Air India's non-core assets including buildings and land.
Tata will not keep non-core assets such as the Vasant Vihar housing colony and the Air India building in Delhi, and another Air India building in Mumbai's Nariman Point.