The Government is itself responsible for bankruptcy of Maharaja

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SATISH SINGH

The recent report of Comptroller and Auditor General (CAG) has again drawn the attention of the whole nation, saying that wrong policies and shortcomings of Civil Aviation Ministry, Air India and Indian Airlines made the Maharaja bankrupt.

IN PRESENT circumstances, the Maharaja losses have been caught in a vortex, which is also hard to come out from it. Its expenditure is 1,700 million rupees and revenue is only 1,100 million rupees. Thus, it is incurring loss of 600 million rupees per month. The Maharaja is today compelled to take loans from Banks for payment of salary of its employees. The purpose of the Government's bail out package of 1,200 million rupees has already been defeated.

Meanwhile, Maharaja has taken the decision to purchase another 27 dream liner aircrafts from United States. Originally, this order had been placed to concerned company in 2005 and its delivery had to be take place in within 3 years. But due to some technical problems, it could not come true. Chairman and Managing Director of the company, Rohit Nandan told the media persons that company’s board has already recommended to approval of this deal. However, final nod from GOM has not yet come. Discussion over this issue is to be carried out by GOM. Final decision over this contract will be taken thereafter.

Interestingly, aviation minister, Shri Vyalaar Ravi has expressed his doubts over financial capability of Air India for finalization of said deal. However, official of 787 dream liner aircrafts has purposed Maharaja to get available loan on concessionary pricing from United State’s Exim Bank. Here question arises, how will Maharaja repay the interest and installments of loan.

Currently, total debt of Maharaja is 43,000 million rupees and after finalization of purposed covenant of 27 dream liner aircrafts, it will reach up to 60,000 million rupees. Anyway, it is now difficult to call off this order. It is in reality related to diplomatic correlation with the United States. Annulment of order may smash up the existing political relation with the United States.

Board of directors of Maharaja opined that the purposed contract of 27 dream liner aircrafts would be proved as panacea of all tribulations of the company and the company will also come out from present economic crunch. But it seems that whole issue has become critical and incurable. Talking about answer of all troubles of Maharaja is easier said than done.

These days, discussion of the privatization of the Maharaja is at its peak, No doubt, private companies are running in profit. Moreover, it may not be best antidote, since corporates are getting profits by the help of Government. In such an unfriendly environment, it is insignificant to think about the revival of Maharaja.