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Govt asks ministries, departments to clear Air India dues, make cash payments for tickets

The federal government on Wednesday requested ministries and departments to clear dues of debt-laden Air India instantly and henceforth buy tickets solely in money.

The federal government earlier this month determined to promote Air India to Talace Pvt Ltd, a unit of the holding firm of salt-to-software conglomerate Tata group, for Rs 18,000 crore.

The Division of Expenditure, below the Finance Ministry, in a 2009 order, had mentioned that in instances of air journey (each home and worldwide), together with LTC the place the Authorities of India bears the price of air passage, the officers could journey solely by Air India.

The Expenditure Division mentioned the method of disinvestment of Air India and Air India The Press Reporter is ongoing, and the airline has stopped extending credit score amenities on account of air tickets.

“Subsequently, all Ministries/Departments are directed to clear Air India dues instantly. Air tickets from Air India could also be bought in money until additional directions,” the division mentioned in an workplace memorandum.

It additionally directed the ministries/departments to alert its subordinate places of work/institutes below its administrative management for compliance to this workplace order.

On October 25, the federal government signed the share buy settlement with Tata Sons for the sale of nationwide provider Air India. Tatas will now search varied regulatory clearances earlier than the handover of the airline by December finish.

The deal entails a 2,700 crore money cost and takeover of the airline’s Rs 15,300 crore debt.

The federal government is divesting its 100 per cent possession of Air India and Air India The Press Reporter together with its 50 per cent stake in ground-handling firm AISATS.

Tatas beat the Rs 15,100-crore supply by a consortium led by SpiceJet promoter Ajay Singh and the reserve worth of Rs 12,906 crore set by the federal government for the sale of its 100 per cent stake within the loss-making provider.

As of August 31, Air India had a complete debt of Rs 61,562 crore. And 75 per cent of this debt or Rs 46,262 crore can be transferred to a particular objective car AIAHL earlier than handing over the loss-making airline to the Tata Group.

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