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ShareNew Delhi: Public sector units under the ministry of civil aviation have together lost Rs 74.06 crore on account of various lapses last fiscal.
According to the latest Comptroller & Auditor General (CAG) report, there were discrepancies in various decisions taken by the Airports Authority of India (AAI), which accounted for a large chunk of this total loss.
The indictment of AAI assumes significance since it remains the largest airport operator in India with 125 airports (including civil enclaves at defence airports) under its management. Of these, only 86 are currently operational and only 15 were profit making till 2007-08!
To begin with, AAI delayed the tender process for duty free shops at Ahmedabad, Goa, Bangalore and Hyderabad and continued to operate on older contract rates, losing Rs 5.15 crore in the process. In another instance, it failed to incorporate the actual area occupied in the award letter for ITDC run duty-free shops at Kolkata airport, losing Rs 1.77 crore.
Failure to insure assets based on current valuation at the Chatrapati Shivaji International Airport, Mumbai led to a loss of Rs 1.07 crore while loss in purchase of spare parts for X-ray baggage inspection system machines for Mumbai and Delhi airports cost the Authority another Rs 65.58 lakh.
Not just AAI, the CAG report has also pointed out that Pawan Hans Helicopters' revenue loss of Rs 42.51 crore due to its inability to complete "mid life" upgradation of choppers needed by ONGC in the stipulated time period.
CAG's observations on AAI and Pawan Hans are in addition to its indictment of state carrier Air India. It mentioned the Rs 8.49 crore loss for the airline due to its inability to get the same rates for catering services on its flights out of Kerala which were negotiated by its own low-cost international subsidiary, Air India Charters. CAG has also pointed out glaring discrepancies in AI's frequent flyer programme system, which could lead to fraudulent transactions and therefore monetary losses.
CAG's observations come at a time when Air India is in the midst of a financial crisis and the government is trying revive the airline, which has run up losses of Rs 5,000 crore in 2008-09.
