Ministries, government departments owe Air India ₹278.49 crore

Various government departments and ministries owe Air India ₹278.49 crore.

According to the loss-making carrier’s reply to a Right to Information (RTI) application filed by Commodore (Retd) Lokesh K Batra on January 20, 2022, the dues are under multiple heads and estimated to have been pending up to October last year.

This pending amount includes ₹244.78 crore from more than 700 government departments and sections as of September 2021 and ₹33.71 crore towards various VIP flights as on July 27, 2021, as per the data. 

This also includes dues from the prime minister’s flights of ₹7.2 crore and the president’s flight dues of ₹6.14 crore. The last audit was done on October 7, 2021, Air India said.

The foreign ministry owes ₹20.37 crore, the home ministry owes ₹7.2 crore and the defence ministry ₹6.14 crore.

Also read: A history of Air India: The Maharaja’s journey through the years

Asked to provide year-wise financial data from FY16 onwards on the amount not recovered but book adjustments done from each such public authority, Air India said in the RTI reply: “As the disinvestment procedure is going on, the requested information will be provided later on.”

With the process of disinvestment of Air India and Air India Express going on, Air India has stopped all credit facilities to government departments. 

“Therefore, all ministries /  departments are directed to clear Air India’s due immediately. Air tickers from Air India may be purchased in cash till further instructions,” the Department of Expenditure, Ministry of Finance, said in an office memorandum on October 27, 2021.

However, modifying the October order, the department issued another order on December 31, 2021, saying: “In all cases of air travel where the Government of India bears the cost of air passage, the officials concerned are to travel by Air India only and air tickets are to be purchased directly from Air India or by utilising the services of the three authorised travel agents viz. Balmer Lawrie & Company Ltd, Ashok Travels & Tours and Indian Railways Catering and Tourism Corporation.”

“To ensure timely payment of air ticket to the travel agents, to confirm the performance of journey, the employee has to submit a certificate / undertaking in prescribed pro forma within 7 days of completion of journey. TA bill may be submitted later as per the existing rules,” it said.