The Government Executes A Share Purchase Agreement With Tata Sons for Rs. 18,000 crore transaction

The government signed a share purchase agreement with Tata Sons on Monday to sell national carrier Air India for Rs 18,000 crore. Talace Pvt Ltd, a subsidiary of the parent company of the salt-to-software conglomerate, had paid Rs 2,700 crore in cash and agreed to accept the airline's Rs 15,300 crore debt. In a deal of Rs 46,262 crore, Air India, India's largest private-sector employer, will be sold to the Tata Group.

Tatas would not keep non-core assets such as Air India's Vasant Vihar housing project and the Air India Building in New Delhi. The government intends to transfer around Rs 16,000 crore in unpaid current commitments to Air India Assets Holdings Ltd. (AIAHL). AIAHL will also assume Rs 9,185 crore in capitalized lease debt for operating leases. Air India will get control of 4,400 domestic and 1,800 foreign landing and parking slots, as well as 117 wide-body and narrow-body aircraft. In 2012, the former UPA administration approved a Turnaround Action Plan (TAP) and a Financial Restructuring Plan (FRP) for Air India.