IAF spent Rs 29 cr to ferry currency post-DeMo: RTI

New Delhi, July 8

Over Rs 29.41 crore was spent on using the Indian Air Force’s ultra-modern transport aircraft — the C-17 and the C-130J Super Hercules — to ferry newly issued Rs 2,000 and Rs 500 currency notes post-demonetisation, according to an RTI reply.

The move to scrap old Rs 500 and Rs 1,000 notes was announced by Prime Minister Narendra Modi on November 8, 2016, that saw 86 per cent of the currency being sucked out of the system, needing an urgent operation to replenish it with new Rs 2,000 and Rs 500 notes issued after demonetisation.

According to the response provided by the IAF, its frontline transport aircraft, the C-17 and the C-130J Super Hercules, undertook 91 sorties to transport bundles of currency from security printing presses and mints to various destinations across the country after demonetisation.

As on November 8, 2016, there were 1,716.5 crore pieces of Rs 500 and 685.8 crore pieces of Rs 1,000 notes in circulation, totalling Rs 15.44 lakh crore, about 86 per cent of the total currency in circulation, according to RBI and government data.

In its RTI response to Commodore Lokesh Batra (retd), the IAF said it billed the government-owned Security Printing and Minting Corporation of India and the Bharatiya Reserve Bank Note Mudran Private Limited to the tune of Rs 29.41 crore for its services.

“I am of the opinion that the government should have avoided using defence assets and instead could have easily requisitioned the services of civil transport aircraft,” Batra said.

This situation could have been avoided, had the government fully prepared itself before making the announcement to demonetise currency notes, he said.

Post-demonetisation, the RBI had spent Rs 7,965 crore in 2016-17 on printing new Rs 500 and Rs 2,000 notes, and those of other denomination, more than double the Rs 3,421 crore it had spent in the previous year.

The demonetisation was hailed as a step that would curb black money, corruption and check counterfeit currency, but the RBI, in its annual report for 2017, had said just 7.1 pieces of Rs 500 note per million in circulation and 19.1 pieces of Rs 1,000 notes per million in circulation were found to be fake in its sample survey. — PTI

91 sorties undertaken

• Indian Air Force’s the C-17 and C-130J Super Hercules aircraft were deployed to ferry Rs 2,000 and Rs 500 currency notes after demonetisation
• The aircraft undertook 91 sorties to transport bundles of currency from security printing presses and mints to various destinations across the country