34. Power of Central Government to give directions.—
(1) The Central Government may give to either of the Corporations directions as to the exercise and performance by the Corporation of its functions, and the Corporation shall be bound to give effect to any such directions.
(2) The Central Government may, if it is of opinion that it is expedient in the national interest so to do, after consultation with the Corporation concerned, direct either of the Corporations—
(a) to undertake any air transport service or other activity which the Corporation has power to undertake;
(b) to discontinue or make any change in any scheduled air transport service or other activity which it is operating or carrying on;
(c) not to undertake any activity which it proposes to do:
Provided that, if at the direction of the Central Government, the Corporation establishes, alters or continues to maintain an air transport service or other activity and satisfies the Central Government that during the relevant financial year the Corporation has suffered on over-all loss in respect of the operation of all its air transport services and of all its other activities and also that the service or activity so established, altered or continued to be maintained in compliance with the directions of the Central Government as aforesaid has been operated at a loss in any financial year, then the Central Government shall reimburse the Corporation to the extent of the loss relatable to the operation of that particular service or activity.
The Central Government is empowered to give directions to both the Corporations and both Corporations are bound to abide by the directions.