Tata Group Chairman Ratan Tata on Monday said he did not enter the airline business as he was not comfortable with the idea of bribing a Minister with Rs. 15 crore, as had been suggested by an industrialist.
He regretted that despite being a pioneer in the airline industry, the group faced enormous problems in setting up a domestic airline in collaboration with the Singapore Airlines.
“We approached three Prime Ministers also. But an individual thwarted our efforts to form an airlines,” Mr. Tata said.
Amid the Tatas' efforts to set up a joint venture with the Singapore Airlines, a fellow industrialist, who remained unnamed, had said: “The Minister was asking for Rs. 15 crore. Why didn't you pay the money?”
Mr. Tata was delivering a lecture on ‘India in 21st Century: Opportunities and Challenges' here.
Keywords: Ratan Tata, airline industry, political corruption
It was quite clear even in the 90's that the government was strangely reluctant to let the Tata's into aviation. Now we know the reason for the reluctance, although, it seems that a bribe only was suggested by another industrialist and not demanded directly by the minister, who took all actions to stymie the Tata proposals. This could also have been at the behest of a competitor, who, it can be surmised, DID have the minister in his pocket.
In the cool hour of the day, especially when he rests on the bed, MR. Ratan Tata must be feeling sorry for not doing the appropriate thing at the appropriate time. The speed money then would have been about 5% of the maximum project cost. Presently the speed money is much higher. One may not be surprised even if it is more than 20% of the current project cost. However ,there is another angle to the disclosure. Perhaps his industrial friend must have miss guided TATA as he/she did not want the TATA group to enter into the air lines business! Anyway, now that he has made this disclosure the ministers and the bureaucrats will be very careful in dealing with TATA group. Therefore it is best time to TATA to consider launching of an air line for the sake of his county men and also to establish its original reputation in the field of airlines connected business.
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