How wrong did the nationalization of Air India prove? Know how billions of public money were wasted

By Sudhakar Yadav February 7, 2024 8:17 PM IST
Air India- India TV Paisa
Photo:FILE Air India

Prime Minister Narendra Modi (PM Modi) mentioned Air India in the Rajya Sabha on Wednesday. He said that Congress had ruined Air India. The PM was making a scathing attack on the Congress while replying to the motion of thanks on the President’s address in the Rajya Sabha. PM said, ‘Congress said that we sold PSUs, drowned PSUs. Various things were said here and even senior people said so. Remember who were the ones who ruined BSNL-MTNL? Respected Chairman, who destroyed Air India, who ruined it. Who brought this situation? Congress party and UPA cannot turn a blind eye to their waste of 10 years.

Tata’s airline got back to Tata

We all know that Tata has bought Air India from the government. On October 8, 2021, Tata Group company Talese Private Limited won the bid to acquire debt-ridden Air India. Since then the face of Air India has changed. Tata Group has spent a lot of money for the expansion of Air India. A large number of new aircraft have also been ordered. But why did the Modi government have to sell Air India? To know the answer to this question you will have to go back 71 years. When in the year 1953, the government nationalized Air India, one of the world’s top airlines.

Tata was nationalized without informing

JRD Tata founded Tata Airlines in the year 1932. In the year 1946, the name of Tata Airlines was changed to Air India. Air India was considered one of the best airlines in the world. After this, in the year 1953, the then Prime Minister Jawaharlal Nehru had nationalized Air India without informing Tata. This was a big blow to Tata. After nationalization, JRD Tata took over as the chairman of Air India. The airline continued to operate well until 1977 under the leadership of JRD Tata. After this Morarji Desai removed Tata from his post.

Air India was incurring a loss of Rs 20 crores daily

At the time of disinvestment, Air India was incurring a daily loss of around Rs 20 crore. It was taxpayers’ money that was being wasted. From 2007-08 to 2020-21, Air India was incurring a loss of Rs 3,000 to 7,500 crore every year, which totaled Rs 85,000 crore. In this way, Air India fell into debt due to a loss of Rs 85,000 crore in 14 years. According to Civil Aviation Minister Jyotiraditya Scindia, in the year 2005-06, Air India was a company with a profit of only Rs 14 crore. At that time, 111 aircraft were purchased for Air India by taking a loan of Rs 55,000 crore and later 15 aircraft were sold in 2013-14. Due to this the debt on the airline increased significantly. Let us tell you that in the year 2001, the then BJP led government had tried to sell 40 percent stake in Air India.

Latest Business News