With Air India set to be acquired by the Tata Group, Prime Minister Narendra Modi on Wednesday said the decision on the national carrier will give new energy to the country's aviation sector. His comments come weeks after Tata group emerged as the winning bidder for Air India paving the way for disinvestment of the loss-making carrier.

In an address after inaugurating the Kushinagar International airport, Modi said the decision on Air India will give new energy to the aviation sector of India. Tata group has emerged as the winning bidder for Air India, and on October 11, a letter of intent (LoI) was issued to the group.

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Earlier this month, the government accepted an offer by Talace Pvt Ltd, a unit of Tata Group, to pay Rs 2,700 crore cash and takeover Rs 15,300 crore of Air India's debt. After Tata’s accept the LoI, the share purchase agreement (SPA) for the sale will be signed. Along with Air India, Tata’s will acquire low-cost carrier Air India Express and Air India's 50 percent stake in equal joint venture AISATS.

First Published:Oct 20, 2021 6:06 PM IST