Government releases money from NSSF for Air India’s VVIP planes purchase

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New Delhi | Published: March 20, 2018 10:44:45 PM

The government has released required funds to Air India for purchase and modification of two VVIP aircraft from the National Small Savings Funds (NSSF) account, Union minister Jayant Sinha said today.

air india, parliament, rajya sabha, bank of barodaIn a written reply to the Rajya Sabha, Sinha said Air India had proposed to seek a short term loan of USD 180 million from Bank of Baroda.

The government has released required funds to Air India for purchase and modification of two VVIP aircraft from the National Small Savings Funds (NSSF) account, Union minister Jayant Sinha said today.

In a written reply to the Rajya Sabha, Sinha said Air India had proposed to seek a short term loan of USD 180 million from Bank of Baroda, which was selected by way of tender process for the modification of two Boeing 777-300 ER aircraft for Special Extra Section Flights (SESF) of the government.

“However, this loan was not taken as the Government of India has released the required funds/ amounts from National Small Savings Funds (NSSF) account for the payment towards both procurement and modification of these two B777-300 ER aircraft,” the Minister of State for Civil Aviation said.

These planes would be used to ferry President, Vice President and Prime Minister.

According to him, the cost of cabin reconfiguration is now estimated USD 132 million for the two planes. The original estimate was around USD 180 million, he added.

Generally, loans are provided from the NSSF to government entities.

All deposits under small savings schemes are credited to the NSSF, according to the website of National Savings Institute.

In the Union Budget for 2018-19, an amount of Rs 4,469.50 crore has been allocated for two new B777-300 ER planes.

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