Scindia defends Air India’s privatisation

Brut India

Civil Aviation Minister Jyortiraditya Scindia recounted how India’s flagship carrier turned into a loss-making entity under the UPA.

Transcript

00:00I am answering your question.

00:02You made me open my mouth.

00:04I was not saying anything.

00:06Many issues were raised here, Mr. President.

00:08The government is selling airports.

00:10I want to explain.

00:12Before 2005,

00:14which, see Mr. President,

00:16which Air India

00:18makes a profit of 15 crores

00:20and which Indian Airlines

00:22makes a profit of 50 crores.

00:24Losses of 14 years, 85,000 crores.

00:262,50,000 crores

00:28loss

00:30in Air India.

00:54Many issues were raised here, Mr. President.

00:56You made me open my mouth.

00:58I was not saying anything.

01:00Many issues were raised here, Mr. President.

01:02Before 2005,

01:04which, see Mr. President,

01:06which Air India

01:08makes a profit of 15 crores

01:10and which Indian Airlines

01:12makes a profit of 50 crores

01:14loss

01:16in Air India.

01:18Losses of 14 years, 85,000 crores.

01:202,50,000 crores loss

01:22in Air India.

01:24The 6 airports

01:26you are referring to,

01:30those 6 airports

01:32based on investment

01:34or privatization

01:36have not been given

01:38to private companies.

01:40Those airports

01:42have been given only

01:44for 50 years

01:46based on a lease structure.

01:48What is the difference

01:50between investment and leasing?

01:52What is the difference, Mr. President?

01:54The first difference is

01:56that in investment

01:58you sell your

02:00Sai equipment.

02:02It will never come back.

02:04In leasing structure,

02:06like you lease your house,

02:08you lease your office space,

02:10on rent you give it for a few years.

02:12Point number 2,

02:14in investment

02:16you only get

02:18one form of interest

02:20that what is the price

02:22of your Sai equipment, we will give it to you.

02:24After that, bye bye.

02:26In leasing structure,

02:28you get

02:30interest for your

02:32Sai equipment

02:34and along with that,

02:36every year you will be given

02:38rent per person.

02:40Third difference,

02:42Mr. President,

02:44in investment

02:46build, operate and own

02:48model is used.

02:50And in leasing structure,

02:52build, operate,

02:54own and transfer back

02:56model is used.

02:58And fourth difference,

03:00Mr. President,

03:02in privatization,

03:04that Sai equipment

03:06will never come back

03:08to the Indian government.

03:10In leasing structure,

03:12after 50 years,

03:14whatever improvements

03:16will be done on it,

03:18it will become

03:20the property of the Indian government.

03:22Air India, Mr. President,

03:24was the

03:26new creation of the country.

03:30It started

03:32from the private sector.

03:36It was

03:38nationalized.

03:42And after nationalization,

03:46for many years,

03:48it was successfully run.

03:50The state of Air India today,

03:52why did this state arise?

03:54We need to understand this, Mr. President.

03:56Now I will take some time,

03:58Mr. President.

04:02In 2005-06,

04:06the Air India

04:10capability

04:12was only of

04:1415 crore rupees.

04:16With that Air India,

04:2068 aircraft

04:22were purchased

04:24by Boeing

04:26and 43 aircraft

04:28by Airbus.

04:30The company

04:32whose capability

04:34is of 15 crore rupees,

04:38with that company,

04:40Air India and Air India Express,

04:42211 aircraft

04:44were being purchased.

04:48What could be the reason?

04:50I don't want to discuss this.

04:52The two companies,

04:54profit-making companies in 2005,

04:56the year they were merged,

04:58from that year,

05:00a loss of 3,300 crores

05:02was started.

05:04From 2007-08 to

05:062020-21,

05:08every year,

05:10a loss of 7,500 crores

05:12was started.

05:14A loss of 85,000 crores

05:16was caused by the combined merger

05:18of Air India.

05:20I am answering your question.

05:22Otherwise, I was quiet.

05:24You didn't ask.

05:26You made me speak.

05:28I didn't say anything.

05:30You made me speak.

05:32I was quiet.

05:34What is the position

05:36of the airlines?

05:38You made me speak.

05:40Losses of 14 years,

05:4285,000 crores.

05:44Infusion of India's

05:46equity, 54,000 crores.

05:48Government grant,

05:5050,000 crores.

05:52190,000 crores,

05:54and the current net debt

05:56was 66,000 crores.

05:58So, a loss of 2,50,000 crores

06:00was created

06:02in Air India.

06:04And this money

06:06does not belong to the government.

06:08This money belongs to

06:10135 crore people of India.

06:12And our Prime Minister

06:14decided

06:16that

06:18this loss

06:20must be stopped

06:22and it must be

06:24invested.

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