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RTI: Government owes Air India Rs 822 crore on account of services to VVIPs

In its RTI response provided on Wednesday to Commodore Lokesh Batra (retd), who sought to know the latest data on outstanding bills of Air India, the carrier said as on November 30, 2019, Rs 822 crore were pending towards VVIP charter flights.

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Published : Feb 6, 2020, 5:03 PM IST

Updated : Feb 6, 2020, 7:24 PM IST

New Delhi: Cash-strapped Air India, which is being disinvested by the government, has to recover over Rs 822 crore for providing VVIP charter flights, according to latest data provided by the national carrier to an RTI response.

In its RTI response provided on Wednesday to Commodore Lokesh Batra (retd), who sought to know the latest data on outstanding bills of Air India, the carrier said as on November 30, 2019, Rs 822 crore were pending towards VVIP charter flights.

It also said an additional Rs 9.67 crore towards evacuation operations and Rs 12.65 crore towards ferrying foreign dignitaries were also pending.

Under VVIP charter flights, Air India provides its aircraft to ferry-- the President, the Vice-President and the Prime Minister-- for which the bills are paid by the ministries.

If outstanding bills of VVIP charter flights were not enough, the carrier had also accrued bills of Rs 526.14 crore towards government offices which also include tickets taken on credit by the officials as on March 31, 2019, according to the reply.

Out of Rs 526.14 crore, Rs 236.16 crore were pending for over three years, Air India said in its response.

The airlines also said provisioned Rs 281.82 crore as an accounting charge in its account books for "probable non-recovery".

Read more:Auto Expo 2020: Major companies unveil new vehicles

Air India had stopped the practice of issuing tickets on credit to government agencies for the travel of their officials in December last year because of accruing pending bills.

In the RTI response, the airlines has provided a list of agencies against which bills were pending. These include the CBI, the Enforcement Directorate, Income Tax, Intelligence Bureau, CRPF, Department of Posts, Reserve Bank of India among others.

Batra had sought "updated (till the date of response), completed and detailed information (including dates and invoices)" on total pending dues towards VVIP charter flights and amounts owed by different public authorities towards Air India among other details.

The information under the RTI Act is defined as any record in any form held by or under the control of public authority which has to be furnished to an applicant within 30 days subject to exemptions under the law.

According to a response provided by the Civil Aviation Ministry on December 5, 2019, a net loss of Rs 8,556.35 crore (provisional) was reported by Air India. The total debt of the airlines is pegged at around Rs 60,000 crore.

On Wednesday, the ministry said reasons for losses reported by Air India were --high interest burden, increase in competition especially from low cost carriers, adverse impact of exchange rate variation due to weakening of the Indian Rupee, and high operating costs.

(PTI Report)

New Delhi: Cash-strapped Air India, which is being disinvested by the government, has to recover over Rs 822 crore for providing VVIP charter flights, according to latest data provided by the national carrier to an RTI response.

In its RTI response provided on Wednesday to Commodore Lokesh Batra (retd), who sought to know the latest data on outstanding bills of Air India, the carrier said as on November 30, 2019, Rs 822 crore were pending towards VVIP charter flights.

It also said an additional Rs 9.67 crore towards evacuation operations and Rs 12.65 crore towards ferrying foreign dignitaries were also pending.

Under VVIP charter flights, Air India provides its aircraft to ferry-- the President, the Vice-President and the Prime Minister-- for which the bills are paid by the ministries.

If outstanding bills of VVIP charter flights were not enough, the carrier had also accrued bills of Rs 526.14 crore towards government offices which also include tickets taken on credit by the officials as on March 31, 2019, according to the reply.

Out of Rs 526.14 crore, Rs 236.16 crore were pending for over three years, Air India said in its response.

The airlines also said provisioned Rs 281.82 crore as an accounting charge in its account books for "probable non-recovery".

Read more:Auto Expo 2020: Major companies unveil new vehicles

Air India had stopped the practice of issuing tickets on credit to government agencies for the travel of their officials in December last year because of accruing pending bills.

In the RTI response, the airlines has provided a list of agencies against which bills were pending. These include the CBI, the Enforcement Directorate, Income Tax, Intelligence Bureau, CRPF, Department of Posts, Reserve Bank of India among others.

Batra had sought "updated (till the date of response), completed and detailed information (including dates and invoices)" on total pending dues towards VVIP charter flights and amounts owed by different public authorities towards Air India among other details.

The information under the RTI Act is defined as any record in any form held by or under the control of public authority which has to be furnished to an applicant within 30 days subject to exemptions under the law.

According to a response provided by the Civil Aviation Ministry on December 5, 2019, a net loss of Rs 8,556.35 crore (provisional) was reported by Air India. The total debt of the airlines is pegged at around Rs 60,000 crore.

On Wednesday, the ministry said reasons for losses reported by Air India were --high interest burden, increase in competition especially from low cost carriers, adverse impact of exchange rate variation due to weakening of the Indian Rupee, and high operating costs.

(PTI Report)

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RBI estimates GDP to expand at 6 pc in FY21
          Mumbai, Feb 6 (PTI) The Reserve Bank of India on Thursday projected the economy to expand by 6 per cent during the next financial year, pegging it at the lower end of the GDP growth estimate of the Economic Survey.
          The survey, tabled in Parliament last month, estimated the GDP growth during FY21 at 6-6.5 per cent.
          After three-day deliberations, the Monetary Policy Committee (MPC), headed by Reserve Bank of India (RBI) Governor Shaktikanta Das, observed that the economy continues to be weak and the output gap remains negative.
          Real GDP growth for 2019-20 was projected at 5 per cent in the December 2019 policy.
          The central bank said that for 2020-21, the growth outlook will be influenced by several factors, including level of private consumption, and external factors.
          It said private consumption, particularly in rural areas, is expected to recover on the back of improved Rabi crop prospects. The recent rise in food prices has shifted the terms of trade in favour of agriculture, which will support rural incomes.
          The easing of global trade uncertainties should encourage exports and spur investment activity, it said.
          "The breakout of the coronavirus may, however, impact tourist arrivals and global trade," it added.
          Also, the rationalisation of personal income tax rates in the Union Budget 2020-21 should support domestic demand along with measures to boost rural and infrastructure spending.
          Taking into consideration different factors, RBI said "GDP growth for 2020-21 is projected at 6.0 per cent in the range of 5.5-6.0 per cent in H1 and 6.2 per cent in Q3,"
          The government has said the Union Budget presented by Finance Minister Nirmala Sitharaman has a host of steps to spur economic growth, which is estimated to have slowed to a decade-low of 5 per cent in the current fiscal. PTI NKD CS
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Last Updated : Feb 6, 2020, 7:24 PM IST
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