Air India: FinMin directs central ministries to clear national carrier’s dues
New Delhi: With the privatization of Air India recently, the Union Finance Ministry has asked all the ministries to clear outstanding payments of the national carrier immediately.
The ministry also advised the government departments to buy Air India tickets using cash transactions until further notice.
A notification on the expenditure memorandum issued to the Union Ministries read, “Recently, the Government of India decided to disinvest Air India. The process of disinvestment of Air India and Air India Express is ongoing.”
“Air India stopped extending credit facility on account of purchase of air tickets. Therefore, all ministries and departments are directed to clear Air India’s dues immediately. Air tickets from Air India may be purchased in cash till further instructions,” it added.
The notice revealed that Air India has discontinued its credit facility for ministers and government officials on domestic and international travels, including LTC, wherein the government would bear travel expenses.
“All ministries and departments shall bring these developments to the notice of their subordinate offices and institutions, under administrative control, for compliance,” the ministry said.
The Tata Group became the owner of the airlines once again after placing the highest bid at Rs.18,000 crores against the original reserved price of Rs. 12,906 crores and received a letter of intent (LOI) from the government on October 11.
The Group will have complete control of Air India, Air India Express, and a 50 percent share in the Air India SATS Airport Services Pvt. Ltd. The airline returned to its parent company, the Tatas, after 68 years.
(Avya Mathur)
