Tata to pay $2.4 bln for troubled Air India

Tata Sons has been chosen as the winning bidder to take over Air India.

That's according to the Indian government Friday (October 8).

It marks the end of years of struggle to privatise the state-run airline.

Tata Sons is the holding company for the autos-to-steel Tata conglomerate.

Indian officials said the group will pay around $2.4 billion for a 100% stake in Air India.

Tata's bid will see it take on $2 billion of the carrier's $8.2 billion debt.

A successful privatisation of Air India would be a win for the Prime Minister Narendra Modi's government.

The airline has cost taxpayers an average of nearly $3 million a day for the past decade.

The sale would help Modi's plan to sell stakes in a number of state-run firms.

He is aiming to get more cash for the government from the sales and make India a fully market-driven economy.

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