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Govt to hand over Air India to Tatas by January end; Vikram Dev Dutt appointed new CMD of airlines

aviation | Jan 18, 2022 7:03 PM IST

Govt to hand over Air India to Tatas by January end; Vikram Dev Dutt appointed new CMD of airlines

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The Ministry of Civil Aviation has appointed lAS officer Vikram Dev Dutt as Air India’s new Chairman & Managing Director (CMD) of the airline, the government announced on Tuesday. He will get the rank and pay of an Additional Secretary.

The government is looking to hand over Air India to the Tata group by January end, sources told CNBC-TV18 on Tuesday.

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Talace Pvt Ltd, a Tata group company, won the bid for the airline in October 2021. It was supposed to get the ownership of the airline by December last year but the handover was pushed to late January 2022.
Meanwhile, the Ministry of Civil Aviation has appointed senior bureaucrat Vikram Dev Dutt as Air India’s new Chairman & Managing Director (CMD), the government announced. His appointment was part of a senior-level bureaucratic reshuffle effected by the Centre on Tuesday.
Dutt is a 1993-batch IAS officer of AGMUT (Arunachal Pradesh, Goa, Mizoram and Union Territory) cadre. He has been appointed as the Air India chief in the rank and pay of Additional Secretary, an order issued by the Personnel Ministry said.
Prior to this, Dutt had taken charge as the Principal Secretary of the Services department in March 2021. And before that, Dutt was appointed as Principal Secretary for the Health and Family Welfare Department of the Delhi government in June 2020.
Dutt’s appointment comes nearly a month after the Competition Commission approved Tata Group's proposed acquisition of Air India, Air India Express, and AISATS.
Talace Pvt Ltd is to acquire a 100 percent stake in Air India and Air India Express and a 50 percent shareholding in Air India SATS Airport Services Pvt Ltd (AISATS).
The Tata group firm had emerged as the winning bidder for Air India in October 2021, with a bid worth Rs 18,000 crore. It will pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt.
As of August 31, Air India had a total debt of Rs 61,562 crore. A total of 75 percent of this debt or Rs 46,262 crore will be transferred to a special purpose vehicle AIAHL before handing over the loss-making airline to Tata Group.
Tatas will not get to retain non-core assets, such as the Vasant Vihar Housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi.
Of the 141 Air India aircraft that Tatas will get, 42 are leased planes, while the remaining 99 are owned.
The sale of Air India to the Tatas was the first sale of a public sector unit since the sale of Indian Petrochemicals Corporation Ltd (IPCL) in 2002.
(With PTI inputs)
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