January 25, 2022 4:00:29 am
AIR INDIA will likely be handed over to the Tata Group on January 27 with the disinvestment process reaching the final stages, according to the airline’s officials. The airline’s balance sheet was finalised and shared with the Mumbai-based conglomerate on Monday, and the company is expected to review it by Wednesday, following which the transfer will be made.
On October 11, the central government had issued the Letter of Intent (LoI) to the Tata Group, confirming its willingness to transfer 100 per cent stake in the airline. At the time, the expected timeline for transfer was set for December-end. This was extended to January-end on account of various pending approvals from global regulators and finalisation of the balance sheet by the lenders and the airline’s lessors.
The closing date of the balance sheet has been set at January 20.
In a communication to the airline’s employees on Monday, Air India’s Director, Finance, Vinod Hejmadi wrote: “The disinvestment of Air India is now decided to be on the 27th January, 2022. The closing balance sheet as on 20th January has to be provided today, 24th January, so that it can be reviewed by Tatas and any changes can be effected on Wednesday”.
Best of Express Premium
“We have done an excellent job till now in providing all support for the disinvestment exercise. The next three days will be hectic for our department and I request all of you to give your best in these last three-four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all,” he wrote.
The Indian Express has reviewed the communication.
In October, the government had announced that the Tata Group placed the winning bid for 100 per cent stake in Air India at Rs 18,000 crore, of which Rs 15,300 crore was the debt component and Rs 2,700 crore was the cash component to be paid to the government.
The final balance sheet has been prepared with approvals from the various regulators, lenders and lessors of the airline. This balance sheet, provided to the Tata Group, is expected to account for the Rs 20 crore loss being incurred by Air India on a daily basis, till the cutoff date of January 20.
The Indian Express reported Sunday, citing an RTI response, that government departments and ministries had pending payments to Air India adding up to Rs 278.49 crore till October last year. This included Rs 244.78 crore from over 700 government departments and sections as of September 2021 and Rs 33.71 crore towards VVIP flights as on July 27, 2021, as per the data.
It also included dues from the Prime Minister’s flights of Rs 7.20 crore and the President’s flight dues of Rs 6.14 crore. The airline has already begun recovering pending dues from government departments – it had recovered Rs 30.38 crore as of November 30 last year.
🗞 Subscribe Now: Get Express Premium to access our in-depth reporting, explainers and opinions 🗞️
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.