Air India was running well and there was modest profit. It all changed after its merger with India Airlines and the intervention of Civil Aviation Minister Praful Patel compelling the company to purchase more than double the planes it did not really require.

Shri Jitender Bhargava, a former Executive Director of Air India, in a forth right article in the “Economic Times” dated 19th October 2014 asserts that the Air India has gone down due to the quixotic plane order by the company. While the Director Board of the Air India only wanted 28 air crafts to be purchased,the ministry under Praful Patel compelled them to order 68 air crafts. Air India was having only Rs. 8,000 crore annual revenue and the profit was only wafer thin. It had no reserve fund.

The cost of the 68 planes ordered was Rs. 39,000 crore.If the planes had to be purchased, the company will have to take loans for which an annual interest of Rs. 2,000 crore has to be paid. It was a cruel decision and a financial tragedy would be the result.

The article reviews through the decision making process and how the Minister dictated and compelled the management to issue the order for 68 planes. The director, who even made some remarks on the non-viability of the plan was terminated from the Board.

The quixotic plane order at the behest of minister was the main reason for the financial trouble and down fall of Air India. This is how the Government ensured that the Air India goes down and the private airlines benefit.

In telecom sector, BSNL, the PSU, was humbled and made financially unviable in another way. If in Air India, order was given for more than required planes, in BSNL it was by cancellation of the 45 million mobile equipment order, which was urgently required by BSNL to expand its services, that the government managed to start the downfall of BSNL. It was Communication Minister Raja who accomplished this for the government by compelling the management to cancel the order. It was only through the united struggle of the workers under the leadership of the JAC of BSNL Unions/Associations in July 2007 that at least half of the 45 million lines could be got ordered. But the further cancellation of the tender for 93 million and 5 million sealed the fate of BSNL. The entire cash balance of Rs. 40,000 crore with BSNL was taken away by the government in the name of notional loan, its huge interest, spectrum charges and so on.

Whether it is the UPA or NDA government, the motto is ” Business is not the Business of the Government” and wants to hand over all the PSUs to the MNCs and Corporates. Of course, it is these corporates and MNCs which have donated lakhs of crores of rupees to both BJP and Congress in the elections and they have to be repaid by undue favours.

It is high time that these ruling classes have to be exposed. It is also necessary that the persons responsible should be booked and punished for destroying the valuable assets of the nation.