New Delhi: Preparing for the imminent privatization of Air India (AI), the government has asked the airline management to ensure the employees vacate the company’s accommodation in AI residential colonies within six months of the Maharaja getting a new owner.
The management has also been directed to seek permission from at least half the employee-members of the two provident fund (PF) trusts to liquidate their investments before disinvestment and transfer to the Employees’ Provident Fund Organization (EPFO). .
Union Home Minister Amit Shah-led GoM on AI disinvestment has decided that the government will meet any shortfall in the liquidation values of investments of existing PF trusts, if required, through budgetary support.
With the government hoping to complete the privatization of AI by the end of this financial year, the Tata group is widely seen as the frontrunner to get back the airline founded by JRD Tata.
The Aviation Ministry has sent a series of communications to AI President Rajiv Bansal on various issues. Among them are:
Modalities to vacate and hand over AI colonies after disinvestment: AI Disinvestment Minister’s Group has decided that “AI employees may continue to reside in the residential colonies of the company for a period of six months or till the monetization of assets, whichever is earlier. Other mechanisms, including appropriate binding legal and financial incentives, should be put in place to enable immediate eviction of properties by employees.
The Ministries told the AI that the employees would not be eligible for HRA or Lease Rent Allowance till they occupied this accommodation and the Government/AI would not be obliged to undertake major maintenance and renovation of these colonies.
The AI Management has been asked to prepare and submit a binding mechanism for vacating these houses by the employees immediately after disinvestment.
Transfer of Provident Fund (PF) under EPF Act 1952 to EPFO from Provident Act 1925: Explaining the GoM’s decision on the issue, the Ministry has informed AI that, “Voluntary transfer of PF before disinvestment for PF benefits of employees, which are presently operated in EPFO through two different trusts.” Investments in existing PF Trusts will have to be liquidated before transfer to EPFO and it will be ensured that the best possible realizable investment(s) is achieved. It was also decided that the liquidation values of investments of existing PF Trusts shall be In case of shortfall, it will be met by AI/Govt of India as and when required through budgetary support.
The ministry has asked the AI to work out the modalities for transfer of PF funds, including obtaining consent of not more than 50% of the employees of each trust.
AI has been asked to complete the process at the earliest. The AI has also been asked to give reasons for any shortfall in the liquidation values of investments in both the trusts on a priority basis.
Medical facilities to retired AI employees after disinvestment: Explaining the GoM’s decision on this issue, the Ministry has informed AI that medical benefits will be provided to both retired and retired AI employees. “Options for provision of these benefits through CGHS will be explored.” A similar model can be adopted for privatization of other PSUs.
Accordingly, the AI has been asked to furnish the details of all existing retired employees and their spouses; who attains the age of superannuation of 58 years in AI, AI Engineering Services and AIASL on the date of closure of the transaction (AI privatization); who either turns 55 on that date or has completed 20 years of service in these three companies; The likely expenditure involved and how the scheme will be implemented for these employees post disinvestment.
The management has also been directed to seek permission from at least half the employee-members of the two provident fund (PF) trusts to liquidate their investments before disinvestment and transfer to the Employees’ Provident Fund Organization (EPFO). .
Union Home Minister Amit Shah-led GoM on AI disinvestment has decided that the government will meet any shortfall in the liquidation values of investments of existing PF trusts, if required, through budgetary support.
With the government hoping to complete the privatization of AI by the end of this financial year, the Tata group is widely seen as the frontrunner to get back the airline founded by JRD Tata.
The Aviation Ministry has sent a series of communications to AI President Rajiv Bansal on various issues. Among them are:
Modalities to vacate and hand over AI colonies after disinvestment: AI Disinvestment Minister’s Group has decided that “AI employees may continue to reside in the residential colonies of the company for a period of six months or till the monetization of assets, whichever is earlier. Other mechanisms, including appropriate binding legal and financial incentives, should be put in place to enable immediate eviction of properties by employees.
The Ministries told the AI that the employees would not be eligible for HRA or Lease Rent Allowance till they occupied this accommodation and the Government/AI would not be obliged to undertake major maintenance and renovation of these colonies.
The AI Management has been asked to prepare and submit a binding mechanism for vacating these houses by the employees immediately after disinvestment.
Transfer of Provident Fund (PF) under EPF Act 1952 to EPFO from Provident Act 1925: Explaining the GoM’s decision on the issue, the Ministry has informed AI that, “Voluntary transfer of PF before disinvestment for PF benefits of employees, which are presently operated in EPFO through two different trusts.” Investments in existing PF Trusts will have to be liquidated before transfer to EPFO and it will be ensured that the best possible realizable investment(s) is achieved. It was also decided that the liquidation values of investments of existing PF Trusts shall be In case of shortfall, it will be met by AI/Govt of India as and when required through budgetary support.
The ministry has asked the AI to work out the modalities for transfer of PF funds, including obtaining consent of not more than 50% of the employees of each trust.
AI has been asked to complete the process at the earliest. The AI has also been asked to give reasons for any shortfall in the liquidation values of investments in both the trusts on a priority basis.
Medical facilities to retired AI employees after disinvestment: Explaining the GoM’s decision on this issue, the Ministry has informed AI that medical benefits will be provided to both retired and retired AI employees. “Options for provision of these benefits through CGHS will be explored.” A similar model can be adopted for privatization of other PSUs.
Accordingly, the AI has been asked to furnish the details of all existing retired employees and their spouses; who attains the age of superannuation of 58 years in AI, AI Engineering Services and AIASL on the date of closure of the transaction (AI privatization); who either turns 55 on that date or has completed 20 years of service in these three companies; The likely expenditure involved and how the scheme will be implemented for these employees post disinvestment.
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