NEW DELHI: The government on Monday signed the share purchase agreement (SPA) with Tata Group for Air India’s divestment, sticking to the timelines that aim at transferring the airline to its new owner by the end of this fiscal.
The Rs 18,000-crore deal, which will require Tatas paying Rs 2,700 crore upfront and taking over a debt of Rs 15,300 crore, will now enter its most crucial phase of meeting vital “conditions precedent” (CP).
The government will retain Rs 44,679 crore of AI’s debt in a SPV which will be paid off gradually by monetising its non-aviation assets like land and buildings.
