Tata Sons has finally won the bid for the national air carrier, Air IndiaAccording to a Bloomberg report. With this, finally the process of privatization is going on and the wait is over. The report noted that this comes on the back of a panel of ministers accepting the group’s proposal to take on the airlines. It is also expected that an official announcement will be made soon. Talking about big changes for airlinesA Business Standard report said that the central government has also agreed in principle to the demands of Air India employees fearing that anything else could lead to industrial discontent and a major hurdle in the process of privatization of airlines. can be proved.
With Tata Sons emerging as the leading bidder in the process, the disinvestment is set to begin in a few days. This history is coming full circle as it was JRD Tata who founded the airline in 1932 under the original name Tata Airlines.
The government compulsorily agrees to bear the cost of liquidation losses on account of transfer from company-owned trusts to Employees’ Provident Fund Organization (EPFO), inclusion of employees in the Central Government Health Scheme (CGHS) and encashment of holidays. Has been. .
It was reported that a ministerial panel of airlines has agreed to most of the demands. However, if needed, budgetary support will be provided before the transfer of ownership, the Business Standard report said.
To meet the demands mentioned in the report, Home Minister Amit Shah and a group of other ministers decided in August to release the budgetary support. Business Standard also reported that the total expenditure is estimated to be around Rs 250 crore. The government appears to be planning to end the sale and transfer of Air India by the end of the year.
Union Minister Hardeep Singh Puri said in a statement that the government had earlier said in November 2019 that the interests of Air India employees would be protected as per the guidance of the Department of Investment and Public Asset Management. The statement was issued after several concerns were expressed to the civil aviation ministry about the potential continued employment of employees following the airline’s strategic disinvestment.
Puri had at the time dismissed reports that several airline pilots of the carrier were leaving the airlines because their salaries were not being paid on time. He defended saying that Air India pilots are looked after very well and their salary was very good in relation to what the airlines was offering.
He further said that unless there is privatization, there will be no job loss in Air India. He said that with regard to the health cover of the employees and the situation at that time, prompted them to get a better deal which was friendly to all the employees.
According to reports, the central government on Thursday asked Air India employees to vacate the accommodation provided by the company within six months of the completion of the current disinvestment process. However, it is to be noted that a meeting was held by Air India Specific Alternative Mechanism (AISAM) in August, in which it was decided that employees can continue to stay in the accommodation for six months or till the property is monetised. A total time of 15 days has been given to the employees from the date of issue of the letter to issue an undertaking for peaceful transfer of accommodation.
On media reports about Tata Group’s victory for Air India, the Secretary of DIPAM said, “The media reports approving financial bids by the Government of India in the AI disinvestment case are incorrect. The media will be informed about the government’s decision as and when it is taken.”
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