Shafeeq Rehman says there should be no regrets for what was a rescue plan for Air India
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THE SUPREME Court directed the Union government in reply to a public interest petition to phase out the subsidy provided for Haj pilgrims in the next 10 years. Haj subsidy is facilitated by government in the form of airfare discount which was Rs 690 crore in 2009, Rs 600 crore in 2010 and Rs 605 crore in 2011 respectively, excluding service tax.
The subsidy was basically started in 1973 when the government ended sea travel. To bridge the gap between air fares and sea passage, government subsidised the pilgrimage. The truth is that airlines are charging fares on the higher side for India-Saudi Arabia during the Haj period vis-à-vis other times of the year. For instance, actual fare per pilgrim was Rs 54,800 in the year 2011 as compared to Rs 25,000 on normal days for return tickets to Saudi Arabia. Higher fares are charged as passengers return only after the fixed period of Haj is over and in the meantime flights return empty. That is why each pilgrim travelling through Haj Committee of India (HCOI) was charged Rs 16,000 towards air fare and the additional amount of Rs 38,000 per Hajji compensated by the Union government was termed ‘subsidy’. Through the subsidy, the government decided not to pass on the burden of the additional amount charged by the airline for logistic reasons.
The ruling to phase out the subsidy got mixed responses from political and community leaders. Secularist and right-wing political parties hailed the decision as the subsidy is considered ‘appeasement’ of people of a particular religion. It was also welcomed by a section of the Muslim community itself which treats the subsidy as being against Islamic norms on the basis that Haj is not compulsory for each Muslim but it is only applicable for those who have the financial capacity. The Supreme Court also directed the government to eliminate the subsidy with reference to Islamic norms and suggested to divert the subsidy amount for the uplift of community. Others argue that subsidy should be continued as it is paid to the airlines and availing of subsidy is not against the teachings of Islam. Further, they argue, the government should help realise poor Muslims’ dream to perform Haj once in a lifetime as it is his duty to fulfill the wishes of its citizens. And government does involve itself in other religious activities directly or indirectly. However, provision of subsidy can be reserved for first Haj or for those 60 plus.
Haj subsidy has been a rescue plan for Air India, with one lakh assured seats every year, and fares deposited three months in advance. Also, HCOI, which works under the Ministry of External Affairs, kept the major share of allocated quota with itself. Instead of subsidy, government should open up the process to competition by inviting tenders globally from all airlines. HCOI should be empowered to operate Haj services as an independent body under the new proposed Haj Law so that decision on selection of airlines, residence in Saudi Arabia and other services can be taken without interventions by both the Indian and Saudi governments. Further, quota should be fairly allocated among the private tour operator (PTOS) along with HCOI, which would bring healthy competition for better and cheaper services. The government need only formulate registration policies and regulate the PTOS.
The Supreme Court also questioned the justification for sending an official delegation on the occasion of Haj and the manner in which people are nominated to it. It is avowedly ‘to convey goodwill on the auspicious occasion of Haj to the Government of Saudi Arabia as well as to the Indian pilgrims’. The delegation is randomly selected and generally consists of about 30 favourites of the ruling party. Instead, it can be restricted to only 2-3 persons.
OF COURSE, mere abolishing of subsidy or decreasing the number of members of the goodwill delegation would not suffice for the betterment of Haj services. To compensate for the subsidy, the government needs to bring structural changes and motivate the spirit of professionalism and competitiveness in HCOI, which will reduce the cost and make it more responsible to pilgrims’ needs. Organisational reform like constituting of an independent Haj department under ministry of minority affairs or autonomous body like NMDFC through an Act of Parliament would improve the Haj operation. Corruption-free selection in each state would increase the faith in government bodies. Regarding the phasing out of subsidy, the government needs to follow the moderate approach between both the extreme points — to eliminate completely or to maintain status quo — as per the requirements and wishes of people.
Posted on 16 May 2012 in Tehelka
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