This works out to a The report states that ten PSU under the administrative control of the ministry of petroleum and natural gas contributed Rs 14, crore of the total dividend, which works out to
Under the current terms, a buyer needs to provide a guarantee that permanent employees of the airline will not be fired for at least one year. After that, the buyer is allowed to offer a voluntary retirement scheme VRS to employees.
This condition along with the fact that any prospective buyer has to take over two-thirds of the Rs 48, crore debt as on March 31, of the airline, has led to a situation where none of the Indian carriers are interested in buying Air India.
Given how risky and difficult the airline business is, such a huge debt amount can pull down even a currently profitable airline. Also, it is worth remembering here that two out of three mergers that happen, fail. While, the debt part of the airline can be handled, how the government handles the ailing carrier's employees is more important.
As on 1 January,the airline had 18, employees. In comparison, IndiGo had 14, employees as on 31 March, How do things look at the employee cost level? This worked out to around Clearly, the employee cost is much more in the case of Air India. Having said that, the difference is not much but can nevertheless be important in a low margin business like airlines are.
For any prospective buyer of Air India, one of the easiest ways to control costs, is to get rid of the non-productive part of the employee base. And any prospective buyer having paid good money to the government would want to employ this strategy.
A British Airways bid But such a situation is likely to arise only if the government is able to sell Air India. Before that, the employee unions are likely to show their nuisance value by making it as difficult as possible for the government to sell the airline. The social media campaign is just the starting point.
The opposition parties are likely to join in as well. Congress party member Manish Tewari recently tweeted about what he things would happen if British Airways bought Air India.
British Airways is just another private airline now and one of the most successful privatisations ever carried out in Britain.
So, if British Airways buys Air India, it will be a great thing because the airline has some experience in turning around a government-owned airline, and running it profitably over the years. The future is unlikely to be as cozy as it is under the current owner and they will make every effort possible to ensure that continues.
But the current owner has spent a lot of taxpayer money to keep this airline going. Between April and Decemberthe accumulated losses of the airline were Rs 46, crore. To keep the airline going, the government invested Rs 26, crore into the airline since April Over and above this, the airline has taken on working capital loans from banks, which as on 31 March,stood at Rs 31, crore.
This basically means that the airline keeps running because of the loans it keeps taking on. The banks are lending to the airline primarily because it is owned by the government, leading to the actual debt of the government going up.
They would have long-stopped lending to a privately owned airline in a similar situation. The larger point being that every extra rupee that the government spends on this airline, is a rupee taken away from something else.
In fact, the vice chief of the Army Lt. The three services are expected to be prepared for at least 10 days of intense battle,' Lt. This is clearly not a good trend.
There are more important things that India needs to spend money on than Air India. If the 18, Air India employees are allowed to hold the country to ransom, then so will the employees of other loss-making government-owned companies like MTNL, BSNL and a whole host of other companies, in the days to come.
Vivek Kaul is the author of the Easy Money trilogy. Apr 16, The Nuclear Power Corporation of India Limited (NPCIL) is a government-owned corporation of India based in Mumbai. One of the public sector undertakings, it is wholly owned by the Union Government and is responsible for .
A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise.
These firms square measure owned by the union government of India, or one amongst the many state or territorial governments, or both. India’s top two oil refiners and retailers Indian Oil Corporation Ltd.
and Bharat Petroleum Corporation Ltd.
lost more than a fifth of their value as rising crude prices increased investor concerns on marketing margins. The government froze prices of auto fuels in the run-up to Gujarat and Karnataka elections despite the rising crude.
and company secretaries of central public sector enterprises. Alexander Berg, Parminder Brar, Manoj Jain, Dhruba Purkayastha, Vijay Tata/ Food Corporation of India Goi: Government of India GRi: Global Reporting Initiative Hpc: Corporate Governance of Central Public Sector Enterprises. A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise.
These companies are owned by the union government of India, or one of the many state or territorial governments, or both. Government of India owns CPSEs, employing lakh people. Of these (excluding the insurance companies), roughly every third enterprise in operation is notching up losses.