Sunday, January 14, 2018

Air India privatisation: Government considers absorbing employees in other PSUs

The Central government is exploring options to retain Air India employees and accommodate them in other public sector undertakings (PSUs) as it inches closer to privatising the national carrier, PTI reported.

The government is also planning options like voluntary retirement package for some of the Air India employees; however, the final decision in terms of emplacement has not been confirmed yet.

"Various options are under consideration to protect the interests of the employees," civil aviation secretary R N Choubey told PTI.

Earlier this week, Centre has approved foreign direct investment (FDI) of up to 49 percent in the debt-ridden carrier. As of September 2017, the national carrier has debt outstanding of more than Rs 52,000 crore.

"Substantial ownership and effective control of Air India shall continue to be vested in an Indian national," the government had said
Air India and its step-down subsidiaries have around 29,000 employees, both including permanent and contract employees. After the government finalises its decision to privatise Air India, various Air India unions are opposed to the divestment plan.
A group of ministers is in the process of finalising the modalities for the proposed strategic stake sale and to invite bidders the government is likely to come up with the expression of interest soon, reported the news agency.
14/01/18 Himadri Ghosh/International Business Times