Tata Sons winner of Air India bid? Govt says no decision taken as yet

DIPAM Secretary, in a tweet, said the government has so far not approved the financial bids for Air India

Tata Sons has been selected as the winning bidder for the debt-laden state-run airline Air India, Bloomberg reported.

A panel of ministers accepted a proposal from officials recommending the salt-to-software conglomerate ahead of an offer from Ajay Singh, promoter of India's airline operator Spicejet Ltd, the report said.

A spokesperson for Tata Sons declined to comment. A finance ministry spokesperson did not immediately respond to a Reuters message seeking comment, while Air India declined to comment.

However, Tuhin Kanta Pandey, Secretary to the Department of Investment and Public Asset Management (DIPAM), the government department responsible for privatisation, in a tweet said the government has so far not approved the financial bids for Air India.

"Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect. Media will be informed of the Government's decision as and when it is taken," he tweeted.

Prime Minister Narendra Modi's government has been pushing to sell its entire interest in the loss-making airline, kept aloft by a bailout since 2012.

The government loses nearly 200 million rupees every day to run the national carrier, which has accumulated losses of over 700 billion rupees ($9.53 billion), officials have said.

An effort to auction a majority stake almost three years ago drew no bids, forcing the government to ease the terms. It had also extended the deadline multiple times due to the pandemic.