Tata Sons-Air India deal: Top 10 points to know about Rs 18000 cr deal and employee benefits

Salt-to-software conglomerate Tatas have won the bid to acquire debt-laden state-run Air India offering Rs 18,000 crore for acquiring 100 per cent shareholding, a senior government official said on Friday. 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 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. Here are top 10 points to know about Rs 18000 cr deal and Air India employee benefits:-

1. The Interests of Employees Will Be Taken Care Of:

The government has assured Air India employees that all their interests will be taken care of even after Tata Sons take command of Air India.

DIPAM secretary Tuhin Kant Pandey said the government will take into account interests of all Air India employees.

2. No Employee Will Be Able To Withdraw For A Year:

No airline employee will be expelled from the company for the next one year. The facilities available to them in Air India will be maintained.

3. What Will Happen After A Year:

The government said Tata Sons is free to take decisions on employees after a year as per the agreement between the government and Tata Sons.

However, if Tata Sons has fired an Air India employee even after a year, he will have to give voluntary retirement (VRS).

4. Employees Will Continue To Get Gratuity And Medical Claims

DIPAM secretary said that there will be no change in gratuity for all Air India employees. At the same time, they will continue to get facilities and medical benefits after retirement.

5. How Many Employees Do Air India Have?

Air India currently has a total of 12,085 employees. Out of this, 8084 are permanent employees and 4001 employees work on contractual basis. Air India also has 1434 employees working in Air India express.

6 - 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.

7 -Tata Sons beat SpiceJet promoter to bag Air India.

8 - 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.

9- Both bidders had quoted above the reserve price, he said adding the transaction is planned to be closed by December.

10- 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 October 4.