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Updated October 8th, 2021 at 22:21 IST

Anand Mahindra welcomes Air India's return to Tata fold; sees ‘reset' of Indian business

Welcoming the announcement of Tata Sons winning the bid for Air India, Anand Mahindra said the decision to disinvest amounts to a reset of Indian business arena

Reported by: Gloria Methri
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Mahindra Group chairman Anand Mahindra on Friday welcomed the announcement of Tata Sons' winning the bid for Air India and said the government's decision to privatize the national carrier amounts to a 'reset' of the Indian business environment.

With this move, the government is not just dispensing of a cash drain but also renewing its faith in the potential efficiency of the private sector, he said. Notably, the government was bearing a loss of Rs 20 crore daily to keep the national carrier flying. 

"I may be accused of overstating the importance of this event but I think this divestment amounts to a 'reset' of the Indian business environment. Yes, the Govt. is dispensing of a cash drain; But it's also renewing faith-after decades-in the potential efficiency of the Pvt. sector," Mahindra tweeted, sharing a post by Tata Sons former Chairman Ratan Tata after the company regained regaining control of Air India.

Tata Sons was selected as the winning bidder for Air India, ending decades of attempts to privatize a debt-laden airline, and potentially ending years of taxpayer bailouts that kept it running.

Tata Sons, which had originally launched the airline in 1932, placed a winning bid of ₹ 18,000 crores to re-acquire Air India, said Tuhin Kanta Pandey, the top bureaucrat at the Department of Investment and Public Asset Management. The company will take on Rs 15,300 crore of Air India's debt, which currently stands at Rs 61,562 crore. The remaining Rs 46,262 crore of debt will be retained by a company that will be spun off, called AIHL which will continue to be owned by the Government.

The government aims to complete the transaction by December 2021. 

'Welcome back Air India': Rata Tata

Industrialist Ratan Tata also reacted to the news that Tata Group has finally won the bid to reacquire Air India. Taking to Twitter, he said Tatas will have the opportunity to regain the image and reputation that the airlines enjoyed in earlier years.

Remembering JRD Tata, under whose leadership Air India had gained the reputation as the most 'prestigious' airline in the world, Ratan Tata said the late Indian aviator would have been overjoyed on this day. 

The former general manager of the national carrier G Prasada Rao also hoped that Tatas will bring the "glorious years" of the airlines back.

"Air India is not just the brand, it is a legacy and history of the country. It is just not the jewel of JRD Tata but also the nation. This homecoming of Air India is certainly a cause for celebration and the rebirth of JRD Tata's dream as he once envisioned it," said Rao.

"With Tata at the helm, Air India's history, legacy, and future come full circle and it will once again stand tall in its full might and glory. We should thank our Prime Minister Narendra Modi and the Group of Ministers lead by (Home Minister) Amit Shah for successfully implementing the process. We hope and wish the Tatas will bring the glorious years back!" he added.

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Published October 8th, 2021 at 22:21 IST

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