Indian conglomerate Tata Group has been linked to talks with the Indian state concerning the purchase of a majority stake in Air India (AI, Delhi International).

Local reports indicate Narendra Modi's government this month approved plans to privatize the heavily-indebted carrier in a bid to ease perennial demands for state-backed bailouts.

According to The Times of India, Tata Group chairman N Chandrasekaran has held informal talks with government about taking back control of the airline. The proposal put forward is said to include Singapore Airlines (SQ, Singapore Changi) with which Tata Group has partnered in its Vistara (UK, Delhi International) project.

The two teamed up in 2000 in an ultimately unsuccessful bid to acquire a 40% stake in Air India. At the time, despite the airline's poor financial footing, then Tata Group chairman Ratan Tata said the group had an emotional attachment to Air-India (Mumbai International), as the national carrier was founded by the late J R D Tata, former group chairman and Ratan Tata’s predecessor, before it was nationalised in 1953.

Recently, Indian Finance Minister Arun Jaitley said the Civil Aviation Ministry would have to explore all possibilities "as to how the privatisation of Air India can be done".