New Delhi: The Indian government owes around ₹ 600 crore to Air India for using its aircraft for travel of VVIPs.

The ministry of civil aviation has taken up the issue with various ministries regarding the pending amount related to the services of Air India aircraft availed for such VVIP travel.

According to official sources, ministries of home affairs and external affairs, among others, have accrued “ ₹ 500-600 crore" dues till 31 March. “These are dues to be paid to Air India for using aircraft for travel of VVIPs," a source said.

Air India is surviving on a bailout package approved in 2012. The erstwhile UPA dispensation had in April 2012 approved Air India’s turnaround plan, with a committed public funding of ₹ 30,231 crore, staggered over a period of nine years, with some specific riders. Besides a debt of ₹ 40,000 crore, the airline had reported losses to the tune of ₹ 5,388 crore in FY-14 as against ₹ 5,490 in the fiscal 2012-13.

After a streak of losses, Air India had reported a net profit of ₹ 14.6 crore in December last year, from a loss of ₹ 168.7 crore in the corresponding period of 2013. The airline in its budget estimates for this fiscal, presented late last month, has forecast that it would become operationally profitable by March next year, much ahead of the TAP projections.

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