Salt-to-software conglomerate Tata Sons has reportedly 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.
A panel of the ministers headed by Union Home Minister Amit Shah has reportedly accepted a proposal recommending Tata Sons bid for the national air carrier.
The members of the ministerial panel comprised Union Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia.
However, the Department of Investment and Public Asset Managament (DIPAM) had said that the media reports indicating approval of financial bids by the government in the Air India disinvestment case are "incorrect".
"Media will be informed of the Government decision as and when it is taken," the DIPAM secretary said in a tweet on Friday (1 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 will divest its 100 per cent stake in Air India, Air India Express and 50 per cent stake in the ground handling company AISATS.
The government also reportedly plans to complete the hand over of the airlines to its new owners by December.