September 8th, 2011
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CAG tables report in Parliament today

air-indiaNew Delhi: The Comptroller and Auditor General (CAG) will table its report on Air India  in Parliament today. In the report The CAG has accused the Civil Aviation Ministry of wasting 700 crores in the purchase and leasing of aircrafts. According to the CAG this is the basic reason which crippled the national carrier.

The report says that the contract with Airbus which was taken by the airline was defective leading to a loss of Rs. 200 crore. The CAG report also states that Air India took a Rs. 200-crore loan and paid extra interest on it, but the ministry says this had to be done until government guarantee got approved. According to the CAG report the high loan rate led to a loss of Rs. 314 crore till March 2010 and would cause a future loss of Rs. 2500 crore.

The CAG report stated that there was ‘lack of foresight of Air India management’ and says that the expansion of Air India’s fleet was not based on due diligence.

 



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