Finance Ministry on Wednesday asked all central ministries and departments to clear their pending dues towards national carrier Air India immediately. Also all central government officials have been directed to buy Air India's tickets in cash till further orders.
The notification issued by the department of expenditure of finance ministry came after the national carrier ended its credit facility to the government as it has been sold off to Tata Sons.
“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 credit facility on account of purchase of air tickets. Therefore all ministries and departments are directed to clear Air India's dues immediately. Air tickets from Air India may be purchased in cash till further instructions," the department of expenditure memorandum said.
The finance ministry said that all ministries and departments should bring these developments to the notice of their subordinate offices and institutes which are under their administrative control, for compliance.