The Indian Government on Thursday handed over the reins of Air India to Tata Group, making Tatas proud owner of  Air India after a gap of 67 years.

The deal to transfer the ownership of Air India was signed in October last year when Tata group offered the highest bid to purchase India’s national carrier for Rs 18,000 crore.

As per the agreement Tata Group would pay Rs 2,700 crore cash and take over Rs 15,300 crore debt of the air carrier.

“The formalities have been completed. The Air India disinvestment process is closed. The shares have been transferred to Talace Pvt Ltd, which is the new owner of Air India,” announced Secretary (Department of Investment and Public Asset Management) Tuhin Kant Pandey this afternoon.

With this announcement, the full control of the airline has come to Tata Group. Earlier the transaction was to be completed by December 2021, but the deadline was later extended till January 2022, owing to the longer-than-expected time taken to complete procedural work.

Later the Finance Ministry announced the completion of the deal. The Air India strategic disinvestment transaction has been completed with the Government receiving the consideration of Rs 2,700 crore from the Strategic Partner (M/s Talace Pvt Ltd, a wholly-owned subsidiary of M/s Tata Sons Pvt Ltd), retaining debt of Rs 15,300 crore in Air India and AIXL.

The government has transferred the shares of Air India (100% shares of Air India and its subsidiary AIXL and 50% shares of AISATS) to the Strategic Partner Talace Pvt ltd, the Ministry said.

The government had issued a Letter of Intent to Talace Pvt Ltd –which offered the highest price bid for Air India on 11 October 2021. Subsequently, the Share Purchase Agreement (SPA) was signed on 25 October last year. It was after that the Department of Investment and Public Asset Management (Finance Ministry) worked with TATA group towards satisfying a set of conditions precedent defined in the SPA including approvals from anti-trust bodies, regulators, lenders, and third parties. All the conditions have since been met to mutual satisfaction by both partners, the Finance Ministry said.