Government formally handsover Air India to Tatas; new board to meet today, says Tata Sons Chairman N Chandrasekaran

Air India has officially been handed over to the Tata Group. The announcement was made by Tata Sons Chairman Natarajan Chandrasekaran who met with the Prime Minister Narendra Modi ahead of the official transfer of the national carrier. The handover formalities have been completed. A meeting of new owner Tata Group’s board will also be taking place today, the Chaiman said. Zee Business Special Correspondent Ambarish Pandey reported the development.

"Your arrival was much awaited, @airindiain. #AirIndiaOnBoard #ThisIsTata," Tata Froup tweeted.

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Your arrival was much awaited, @airindiain. #AirIndiaOnBoard #ThisIsTata pic.twitter.com/OVJiI1eohU

— Tata Group (@TataCompanies) January 27, 2022

The divestment deal is complete. It is being seen as a big development for India's divestent goals and also for the Tata Group. It is also significant for several banks. Zee Business Senior Research Analyst Varun Dubey has this special report. 

Air India Deal : Full Details

1) In October 2021, Tata Group bought Air India from the government at Rs 18,000 cr.

2) In this around Rs 2,700 cr was to be given to the Government, while the remaining Rs 15,300 cr was taken by the Tata Group as debt. 

3) Now the Group will have Air India, Air India Express and Vistara under its fold. 

4) Tata Group also has a 50 per cent share in Air India Sats.

The deal now is expected to benefit banks, especially the Public sector banks which have a significant exposure in it. Bank of Baroda (BoB) has the largest exposure in the company with Air India owing Rs 7600 cr to it. Next is Punjab National Bank (PNB) which has an exposure of Rs 3790 cr while UCO Bank has an exposure worth Rs 2100 cr in the company. Bank of India and Punjab & Sind Bank have exposure amounting to Rs 1730 cr and Rs 1500 cr respectively. As for Union Bank, it has exposure is worth Rs 700 cr while State bank of India (SBI) has exposure around Rs 452 cr.

It is being said that the Tata Group will also be coming up with a reival plan and the blueprint on which is also ready.  

The group is also expected to put additional capital in Air India and other airlines. More funding from banks could also come, going forward. Dubey said.

Its a double benefit for the banking sector.

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PM मोदी से टाटा संस चेयरमैन एन चंद्रशेखरन ने की मुलाकात#AirIndia | #PMModi | #TataGroup | #NatarajanChandrasekaran pic.twitter.com/45X6Jiqd2A

— Zee Business (@ZeeBusiness) January 27, 2022

  Post the transfer of Air India operations to Tata Group, a meeting between Prime Minister Narendra Modi and Ratan Tata is highly likely, sources told Zee Business.