The Finance Ministry has directed all central ministries and authorities departments to clear dues to Air India instantly. The Department of Expenditure (DoE) additionally stated that authorities departments could buy tickets from Air India in money solely, because the service — to be taken over by the Tata group — has stopped extending a credit score facility to the federal government.
“All ministries/departments are directed to clear Air India’s due immediately. Air tickets from Air India, may be purchased in cash until further instructions,” the DoE, beneath Finance Ministry, stated in a memorandum Wednesday.
Under a 2009 memorandum, in any case the place the Central authorities is bearing the price of air journey for officers together with for LTC (go away journey concession), tickets can solely be bought from Air India. Air India officers have beforehand cited points of huge authorities dues on account of VVIP journey, evacuation operations and different official journey as a part of the rationale for working capital points.
On Monday, the Centre signed a share buy settlement with the Tata group on the market of Air India for Rs 18,000 crore. The authorities had earlier this month accepted a suggestion for Air India by Talace Pvt Ltd, a Tata Sons subsidiary, to pay Rs 2,700 crore money and take over Rs 15,300 crore of the airline’s debt.
