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SJM asks government not to disinvest Air India

IANS  |  New Delhi 

The Swadeshi Jagran (SJM) has asked the to rethink its plan to disinvest along with 92 other central public sector enterprises.

In it's recently-held Meeting, the RSS-affiliated organisation has strongly urged the government to abandon its plan to disinvest and instead expand the national carrier's business by reclaiming it from private parties, especially ground handling business of key airports handed-over to a Singapore-based company during the previous UPA regime.

The SJM, in a press statement, signifying the essence of Air India, said it has substantially high intangible assets in the shape of international parking slots, "earned over a period due to diplomatic relationships with some important countries and a very big pool of highly qualified engineers as part of its workforce."

has three wholly-owned subsidiaries - Air India (AIATSL), Air India (AIESL) and Alliance Ltd (AASL), which have been included in the list for disinvestment.

AIATSL is a with a market share of 37 per cent, and it is profit-earning, besides providing to Air India at subsidised prices at many airports.

AIESL is the one-stop-shop for all engineering requirements of Air India, and it has various international and domestic approvals from various civil aviation bodies. On the other hand, AASL manages flying operations in Tier-2 and Tier-3 cities, providing last mile connectivity to passengers at cheaper fares.

emphasised these three subsidiaries could play an important role in the survival of Air India, and any attempt to disinvest them would certainly jeopardise the efficiency of the

"This move (disinvestment) will not only result in creating further and deeper problems for Air India but also put in jeopardy strategic engineering services, at airports and to connect remote parts of the country under UDAN scheme," said in a statement.

The outfit also cited Bharat Sanchar Nigam Limited's (BSNL) profitable activities of services and tower assets, and claimed that the government is contemplating to hive-off its subsidiaries Nigam Limited and BSNL Ltd.

"Sale of these companies may fetch a few crores to the government but it will make BSNL bleed further. Similar issues are there in other strategic disinvestment proposals," said the statement.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, June 09 2019. 21:20 IST