Salt-to-software conglomerate Tata Sons has won the bid for the debt-laden Air India, the national air carrier that was founded by J R D Tata as Tata Airlines in 1932 and later nationalised by the government in 1953.
According to the the Department of Investment and Public Asset Managament (DIPAM), two financial bids were submitted for the Air India.
An SPV of Tata Sons - the holding company of conglomerate - has emerged as successful bidder, Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM) - the government department responsible for privatisation - said.
Tata Sons beat SpiceJet promoter Ajay Singh led consortium to bag Air India.
The DIPAM secretary said Tatas' bid of Rs 18,000 crore comprises taking over of 15,300 crore of debt and paying the rest in cash.
Both bidders had quoted above the reserve price, he said adding the transaction is planned to be closed by December.
He said a group of ministers comprising Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia has cleared the winning bid for Air India on 4 October.
Tata Sons and Spicejet founder Ajay Singh were the frontrunners to buy the carrier and had submitted their bids last month.
According to a Times of India report, the government is divesting its 100 per cent stake in Air India, Air India Express and 50 per cent stake in the ground handling company AISATS.
(With inputs from PTI)