Govt denies reports of Tata Sons winning Air India bid

The finance ministry on Friday clarified that reports suggesting that Tata Sons has won the bid for Air India were not correct after it was reported that a panel of ministers accepted a proposal from officials which recommended Tata Sons, ahead of SpiceJet Limited promoter Ajay Singh's bid. "Media reports indicating approval of financial bids by Government of India in the AI disinvestment case are incorrect," the ministry said in a tweet. “Media will be informed of the Government decision as and when it is taken,” it said. The Union Government has been trying to sell the debt-laden national carrier which has been kept afloat with multiple bailout packages since 2012. 

Bloomberg News had reported earlier on Friday that a panel of ministers accepted a proposal recommending Tata Sons' bid for money-losing state-run airline Air India.On Thursday, former Air India director Jitender Bhargava had said that Tata Group will likely receive the government’s nod considering how the company is capable of revamping the flag carrier. Tatas have been very, very passionate about Air India," he was quoted as saying by Bloomberg. Notably, business tycoon JRD Tata had founded the airline and had piloted the first flight in 1932.The group had submitted the final bid for the airline on 15 September. Sources indicated that the bid submitted by Tata Sons was Rs 3,000 crore more than the minimum reserve price set by the government committee, India Today reported. Spice Jet promoter Ajay Singh has also submitted a bid for the airline, as per reports. The government loses nearly Rs 20 crore every day to run the national carrier, which has accumulated losses of over Rs 70,000 crore, officials have said, Reuters reported.