Business & Economy

Government ministries and departments to clear all Air India dues and to make only cash payment for tickets.

The Government of India had signed an agreement on October 25th with Tata Son’s with the objective of sale of national carrier Air India.

At an early stage of this month,the Government decided to sell Air India to Talace Pvt Ltd, a unit of holding company agglomerated with Tata group for 18,000 crore.

Last week the Government  asked all ministries and departments to clear all levy of debt- laden Air India soon, asking to make payment in cash and then purchase the tickets.

In 2009 order, under the Finance Ministry the department of expenditure has pronounced that both domestic and international, including LTC here Government holds the cost of air passage, the officials may travel only by Air India. And  the process of disinvestment of Air India and Air India Express was still in play and later the Airline stopped giving credit facilities for air tickets.

AIR INDIA’S DEAL FOR GOVERNMENT AND TATA GROUP WAS ALL ABOUT:

The department said in an office memorandum vocalized ” Therefore all the ministries/departments are directed to clear Air India dues immediately.Air tickets from Air India may be purchased in cash till further instructions.”

There is also an order to all ministries and departments to alert their subordinate offices or institutes under the hands of administrative control for compliance to this office order.

The Government came into an agreement with Tata Sons on October 25th for the sale of National Carrier Air India. Before the handover of the Air India by December end, Tatas will look for various regulatory clearances. This deal includes a cash payment of Rs. 2,700 crore and the Air line’s take-over debt was Rs.15,300 crore.

The Government is relieving it’s 100 per cent Air India and Air India Express ownership with its 50 per cent stake in ground-handling company AISATS.

The offer of Rs.15,100 crore was hit by Tata’s by an association led by SpiceJet promoter Ajay Singh and the Government has kept a reserve of Rs.12,906 for its stake in the loss-making Carrier.

Air India had a debt of Rs.61,562 crore by august 31. And Rs.46,262 or 75 percent of this debt will be taken to a distinctive purpose vehicle AIAHL before giving over the loss-making Air India to the Tata group.

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