New Delhi:
Attacked by the opposition over the sale of Air India to Tata Group, Civil Aviation Minister Jyotiraditya Scindia hit back on Wednesday, accusing the UPA regime of burdening the then-profitable national airline with a huge debt burden.
In response to the debate on the Ministry of Civil Aviation grant applications in Lok Sabha, Mr Scindia cited the merger of Air India and Indian Airlines, the purchase of 111 new aircraft and the liberalization of bilateral rights as the reasons for the demise of the national airline. carrier.
Previously, opposition members had criticized Mr Scindia for failing to refer to the sale of Air India in his nearly hour-long response to the eight-hour debate over the budget allocation to the Ministry of Civil Aviation.
“Before 2005, Air India was making a profit of Rs 15 crore a year and Indian Airlines was making a profit of Rs 50 crore. These airlines had to buy 111 aircraft at a cost of Rs 50-55,000 crore, leaving the flag carrier in deep debt,” it said. Mr Scindia.
As opposition members rose in protest, Mr Scindia said he had not referred to Air India at all, but was forced to speak after Trinamool leader Sudeep Bandyopadhya and Congress leader Adhir Ranjan Chowdhury raised the issue.
The civil aviation minister said the decision to merge two airlines with completely different work cultures, the purchase of 111 aircraft, the liberalization of bilateral rights when Indian airlines were unable to comply, caused Air India to lose a daily loss of Rs 20 crore to book .
He said 14 years of losses had reached Rs 85,000 crore, the equity infusion had cost the government Rs 54,000 crore, subsidies to the airline totaling Rs 50,000 crore and net debt of Rs 66,000 crore had made Air India do. staring at a gap of Rs 2.5 million crore.
“It is under these circumstances that the Prime Minister has taken a decision to put an end to these losses. He decided to divest Air India to protect the money of 135 crore Indians and put it to good use through programs such as Ujjwala, Jal Jeevan Mission,” said Scindia.
Speaking of concerns raised by members, Mr. Scindia said the shareholders’ agreement with the Tatas clearly stated that there will be no layoffs in the first year.
After the first year, workers will be offered a voluntary retirement plan, he said, adding that retired and retired workers will continue to receive medical benefits under the Central Government Health Scheme (CGHS).
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