The finance ministry has permitted government officials to use the services of private airlines and telecom companies.
As part of the new austerity measures laid down by the ministry, government departments and ministries can avail of services of private airlines, for both domestic and international travel.
In telecom too, they can go for service providers other than Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd if the private players offered more competitive tariffs.
Indian Airlines executives said there would not be a significant drop in business as very few officials were entitled to fly. Private carriers said they would try to exploit the opportunity available to them.
But in case of telecom service providers, the public sector players are expected to take a hit as the government departments run a sizable phone bill. The finance ministry has also permitted the departments to use promotional schemes and offers from Indian Airlines and Air India.
At present, the government pays the full airfare for all tickets booked by it. For international travel, officials are required to fly Air India unless tickets are unavailable. For domestic travel, the norms require prior permission from the finance ministry for flying with a private carrier.
The austerity measures have also stipulated that foreign travel will be limited and the size of the official delegations, where foreign travel is essential, should be restricted to the bare minimum. Foreign travel for study tours, seminars and workshops have been banned.
"While officials are entitled to various classes of air travel depending on seniority etc, we hope that utmost economy would be observed while exercising the choice, and bookings in the first class should be avoided unless considered necessary for protocol purposes. In delegations led by ministers, irrespective of entitlement, no member of the delegation should choose to travel by a class higher than the one chosen by the minister," the finance ministry said.
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