The government has sought Tata Sons' help to rescue cash-strapped airline Jet Airways, sources told Bloomberg.
Tata Sons is reportedly in talks with the government about a potential haircut on Jet's loans, while Airports Authority of India (AAI) is likely to forego some of the troubled airline's dues.
The Tata Sons board will deliberate on the matter on November 16, sources told the news service.
Moneycontrol could not independently verify the report.
If the deal is successful, Tata Group will secure Jet Airways' landing rights, routes and related infrastructure amenities.
Read: In Jet Airways, N Chandrasekaran sees his vision for Tata's aviation business taking flight
Media reports suggested that Tata Sons Chairman N Chandrasekaran is keen to work out the deal as it would strengthen the group's position in the aviation business and give it a much-needed heft.
Jet Airways has a considerable presence on the ground with its 124 aircraft that operate nearly 700 flights a day. The airline flies to and from 66 destinations and has a market share of 15.8 percent.
The deal would save Prime Minister Narendra Modi's administration the embarrassment of staring at a business meltdown ahead of 2019 general elections, Bloomberg reported.
Read — Jet Airways stake sale: Investors keen, but talks stuck over Naresh Goyal's role
The Naresh Goyal-controlled airline has been looking for investors to deal with the liquidity crunch that it has been saddled with.
Jet Airways' deputy Chief Executive Officer and Chief Financial Officer Amit Agarwal had admitted earlier this week that the company was in talks with "multiple interested parties" for fund infusion, as well as selling 6 of its Boeing 777 planes and some stake in its loyalty programme Jet Privilege.
While a potential structure for the deal has not been finalised as yet, media reports suggest the first leg of Tata Group's plan to acquire a controlling stake in Jet Airways may involve a merger of the beleaguered airline with Tata SIA Airlines, a joint venture between the Tatas and Singapore Airlines that operates Vistara.
Read — Opinion | With eye on Jet Airways, could Tata be biting more than it can chew?
In the second leg, Singapore Airlines may purchase the entire stake of Jet Airways promoter Naresh Goyal's family in the combined entity, sources told the paper. They also said Etihad may choose to stay invested in the airline as a minority shareholder.
Naresh Goyal and wife Anita Goyal own 51 percent in Jet Airways, while UAE-based Etihad Airways owns 24 percent.
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