You are here: Home » Companies » News
Business Standard

Air India employees' interest will be protected, says Hardeep Singh Puri

The interest of Air India employees will be safeguarded in accordance with the guidance of the Department of Investment and Public Asset Management, Puri said

Air India | Air india privatisation | privatisation

Press Trust of India  |  New Delhi 

Hardeep Singh Puri
Hardeep Singh Puri | File photo

The interest of employees will be safeguarded in accordance with the guidance of the Department of Investment and Public Asset Management, Union Minister Hardeep Singh Puri said on Wednesday.

The disinvestment process of Air India, which had a total debt of over Rs 38,366 crore in the last fiscal -- is in progress.

"The interest of the employees of will be safeguarded in accordance with the guidance of the Department of Investment and Public Asset Management, Ministry of Finance and same will be reflected in the Share Purchase Agreement to be signed with new owner post disinvestment," Puri said in a written reply to the Rajya Sabha.

The civil aviation minister was responding to a query on whether current employees of will remain employed with the airline post its strategic disinvestment.

The Preliminary Information Memorandum (PIM) for inviting Expression of Interest (EoI) for strategic disinvestment of the government's 100 per cent stakes in Air India and Air India Express and 50 per cent shareholding in Air India SATS was issued on January 27, 2020.

In the wake of the coronavirus pandemic, the EoI deadline was extended from time to time and the last date was December 14, 2020.

As per audited accounts of FY 2019-20 (provisional), the airline's total debt was Rs 38,366.39 crore. "The above amount is after the transfer of debt amounting to Rs 22,064 crore during the FY 2019-20 to Air India Assets Holding Limited being a Special Purpose Vehicle (SPV)," Puri said.

In another written reply, the minister said that as on December 31, 2020, the airline's total dues against various government departments on accounts of airfare, "including dues towards VVIP Operations were Rs 498.17 crore".

"Usually, the credit period for Government of India Departments varies from 15 to 30 days from the receipt of invoice and no interest is paid to Air India in case of non-payment within the credit period," he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 03 2021. 17:46 IST