Tatas needed assurance that aircraft would not be stranded and would be allowed to operate while the requisite clearances from DGCA were secured.
DIPAM would now focus on devising a strategy for monetising Air India subsidiaries held by the special purpose company AIAHL & offsetting liabilities.
Air India has 2,378 international and 4,486 domestic slots across Indian and major international airports.
A spokesperson of Tata Sons told a news agency that the company has also submitted its bid for the national carrier.
The success of the ambitious plan depends on fairness, transparency and efficient use of the assets and not only on the moolah it rakes in
DIPAM has invited bids from merchant bankers and legal advisors for working on the proposed IPO
The report quoted an unnamed official as saying that a final decision would be taken only after an assessment of the various choices
Multiple bankers with experience in managing large public offerings would be hired by the government and they would decide the size of the IPO
The move, if approved by the union cabinet, would facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp Ltd.
A residential plot and a flat in Mumbai, five flats in Delhi, a residential plot in Bengaluru, are among the properties on that have been put on sale