The Union Finance Ministry on Wednesday directed all ministries to clear dues of Air India and also instructed them to buy air tickets in cash till further orders.
"Recently, the Government of India has decided to disinvest Air India, the process of disinvestment of Air India and Air India Express is ongoing. Air India has stopped extending the credit facilities on account of the purchase of air tickets. Therefore, all Ministries/ Departments are directed to clear Air India's dues immediately. Air tickets from Air India may be purchased in cash till further instructions," reads the Ministry of Finance order.
"Ministries/Departments are directed to bring out these instructions to the notice of their Subordinate offices/ Institutes etc under their administrative control, for compliance," it adds. Tata Sons had won the bid for acquiring national carrier Air India for Rs 18,000 crore, on October 8.
The transaction will be completed by December 2021, informed Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey. The bid was filed byTata Sons wholly-owned subsidiary Talace Pvt Ltd. Tata Sons were up against Spicejet promoter Ajay Singh-led consortium who had bid Rs 15,100 crore. The total debt of Air India as of August 31 stands at Rs 61,562 crore.
Air India's reserve price was fixed after the bids were called to ensure that the bidders do not get to know about the reserve price prior to their bidding. It ensured utmost confidentiality when it comes to the reserve price. The government will divest its 100 per cent stake in Air India, Air India Express and 50 per cent stake in ground handling company AISATS.
