It may take a month to complete the process of handing over the state-owned airline Air India to the Tata group. Now this acquisition is expected to be completed by January itself. In October last, the government approved the acquisition of Air India by accepting a bid made by a Tata Sons company. Along with Air India, 100 percent stake of its cheap airline Air India Express will also be sold. Along with this, 50 percent stake of its ground handling company AISATS will be given to the Tata Group.

Negotiations are on to extend the date
At that time, it was said by the government that the formalities related to this acquisition would be completed by the end of December. According to the rules, the process of delivery should be completed in eight weeks but it can be extended if both the parties agree. In this case also, talks are on to extend the date. An official familiar with the development said that some regulatory approvals are yet to be received but will be completed soon. The official, on condition of anonymity, said, “This process will be completed by January.” However, he did not give any date for the same.

The airline owes Rs 61,562 crore
On October 25, the government had entered into a purchase agreement with Tata Sons for the sale of Air India for Rs 18,000 crore. Tata will give Rs 2,700 crore in cash to the government in lieu of the deal and take on the debt of Rs 15,300 crore outstanding on the airline. Another official said that the government will get the cash amount under the deal only after the acquisition process is over. Air India was continuously making losses since its merger with Indian Airlines in the year 2007-08. As on August 31, it had a total outstanding of Rs 61,562 crore.