NEW DELHI - The government of India has issued a letter of intent (LoI) confirming the sale of its 100 per cent stake in loss-making Air India to Tata Group for Rs 18,000 crore, a senior official said. Last week, the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of salt-to-software conglomerate, to pay Rs 2,700 crore in cash and takeover Rs 15,300 crore of the airline’s debt.

Subsequent to that, an LoI has now been issued to Tata confirming the government’s willingness to sell its 100 per cent stake in the airline. “Letter of Intent has been issued today,” DIPAM Secretary Tuhin Kanta Padney told PTI here. Tatas now have to accept the LoI, post which the Share Purchase Agreement will be signed. Conditions precedent to the transactions would need to be satisfied by Tatas before they actually take over the operations.