FinMin to Federal Ministries and Departments: Clear Air India Dues, Buy Seats in Cash

All key ministries and government entities have been asked by the Finance Ministry to discharge Air India’s debts as soon as possible. The Department of Expenditure (DoE) also stated that government agencies may only purchase tickets from Air India in cash, as the carrier which is set to be acquired by the Tata group, no longer offers credit to the government.

“All ministries/departments are directed to immediately clear Air India’s due.” Air India tickets may be purchased in cash until further orders,” the Department of Economic Affairs, which is part of the Finance Ministry, stated in a memo on Wednesday.

The Centre and the Tata group signed a share purchase agreement for the sale of Air India for Rs 18,000 crore on Monday. The government approved a bid from Talace Pvt Ltd, a Tata Sons subsidiary, to pay Rs 2,700 crore in cash and take over Rs 15,300 crore of Air India’s debt earlier this month.

Pic Courtesy: google/ images are subject to copyright