The government on Thursday (27 January) officially handed over Air India to the Tata Group.

Tata Sons chairman N Chandrasekharan said the group is very happy to have Air India back in its fold.

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey told reporters that Air India has been handed over to Talace Private Limited, a subsidiary of the Tata Group's holding company, which is the successful bidder.

'Now, the new owners (of the airline) are Talace,' Pandey noted.

In a statement on Thursday, the Finance Ministry said, "The Air India strategic disinvestment transaction has been completed today with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner Talace Pvt Ltd, a wholly owned subsidiary of Tata Sons, retaining debt of Rs 15,300 crore in Air India and AIXL and transferring shares of Air India (100 per cent shares of Air India and its subsidiary AIXL and 50 per cent shares of AISATS) to the strategic partner".

After a competitive bidding process, the government had on 8 October last year sold Air India to Talace Private Limited for Rs 18,000 crore.

The Letter of Intent was issued to the the Tata group subsidiary on 11 October 2021.

"The Share Purchase Agreement (SPA) was signed on 25 October, 2021. Thereafter, Talace Pvt Ltd, Air India and the government worked towards satisfying a set of conditions precedent defined in the SPA including approvals from anti-trust bodies, regulators, lenders, third parties, etc. These conditions have since been met to mutual satisfaction," the Finance Ministry said.

Speaking to reporters in New Delhi, Tata Sons chairman N Chandrasekharan said, 'We are totally delighted that the takeover process of Air India is complete.' 'We are very happy to have Air India back in the Tata group. We look forward to working with everyone to create a world-class airline,' he added.

(With inputs from PTI)