DISINVESTMENT

air-india:-puri-to-meet-trade-unions-amid-sale-process

Air India: Puri to meet trade unions amid sale process

New Delhi: Amid government’s attempt to sell stake in Air India, trade unions of the aviation company are likely to demand a VRS package at their second meeting with Minister of State for Civil Aviation Hardeep Singh Puri. He is likely to meet over a dozen Air India unions including unrecognised ones.

This is for the second time in a month over airline's privatisation plans. The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

The minister had made it clear that privatisation was the only option before the government at the first meeting on January 2, 2020 to keep the airline afloat and sought employees cooperation in carrying out the disinvestment process.

Puri had also told unions that he would call them again after the meeting of the ministerial panel on Air India disinvestment. The GoM led by Union Home Minister Amit Shah on January 7 approved the plan to invite EoI and the sale-purchase agreement for the disinvestment of the state-run carrier.

20 Jan 2020
cmd-air-india:-lohani-may-get-extension-

CMD Air India: Lohani may get extension?

Amid government’s approval of a draft document inviting expressions of interest by the end of January 2020 the outgoing Air India CMD Ashwani Lohani is tipped for another extension. Lohani’s tenure as CMD is coming to end on February 15, 2020.

Indianmandarins has reliably learnt that top authorities have arrived at a consensus to extend Lohani’s tenure which may be formalised soon.

Further, it may be underlined that about half of the debt has already been transferred to the SPV and the government may further approve transfer of Air India’s debt to a special purpose vehicle (SPV). However, it was not clear what the government plans to do with Air India’s large workforce, currently more than 20,000, including that of its subsidiaries. Air India has 128 aircraft in its fleet. A cash shortage has forced the grounding of 26 of its aircrafts.

09 Jan 2020
air-india:-puri-to-meet-trade-unions-amid-sale-process

Air India: Puri to meet trade unions amid sale process

By IndianMandarins 20 Jan 2020

New Delhi: Amid government’s attempt to sell stake in Air India, trade unions of the aviation company are likely to demand a VRS package at their second meeting with Minister of State for Civil Aviation Hardeep Singh Puri. He is likely to meet over a dozen Air India unions including unrecognised ones.

This is for the second time in a month over airline's privatisation plans. The government is planning to float Expression of Interest (EoI) for selling its entire 100 per cent stake in the loss-making flag carrier some time next week.

The minister had made it clear that privatisation was the only option before the government at the first meeting on January 2, 2020 to keep the airline afloat and sought employees cooperation in carrying out the disinvestment process.

Puri had also told unions that he would call them again after the meeting of the ministerial panel on Air India disinvestment. The GoM led by Union Home Minister Amit Shah on January 7 approved the plan to invite EoI and the sale-purchase agreement for the disinvestment of the state-run carrier.

cmd-air-india:-lohani-may-get-extension-

CMD Air India: Lohani may get extension?

By IndianMandarins 09 Jan 2020

Amid government’s approval of a draft document inviting expressions of interest by the end of January 2020 the outgoing Air India CMD Ashwani Lohani is tipped for another extension. Lohani’s tenure as CMD is coming to end on February 15, 2020.

Indianmandarins has reliably learnt that top authorities have arrived at a consensus to extend Lohani’s tenure which may be formalised soon.

Further, it may be underlined that about half of the debt has already been transferred to the SPV and the government may further approve transfer of Air India’s debt to a special purpose vehicle (SPV). However, it was not clear what the government plans to do with Air India’s large workforce, currently more than 20,000, including that of its subsidiaries. Air India has 128 aircraft in its fleet. A cash shortage has forced the grounding of 26 of its aircrafts.

stc:-what-does-govt-want-

STC: What does govt want?

By IndianMandarins 06 Jan 2020

Solution lies in the problem itself but it requires to be fixed. BSNL, Air India and several others are often in the lime-light but for State Trading Corporation (STC) appears to be daydreaming. There is no full time CMD for over three years and no full time director finance for over four years, a number of criminal and legal proceedings going on for recovering more than Rs 2,000 cr.
It is always easy to blame the government as several senior officials working in CPSEs say that government should close it down while some others say that moves to close STC would hamper recovery process and completion of criminal proceedings.

bpcl,-concor-and-air-india-sale-to-be-delayed;-likely-after-march

BPCL, Concor and Air India sale to be delayed; likely after March

By IndianMandarins 03 Jan 2020

It is likely that the government may not be able to complete sale of BPCL, Concor, and Air India by March-end. Actually the government has to respond to what the potential bidders ask for. Sometimes, they seek time to examine financial statements. Sometimes, they want to do physical due diligence.

The delay in divestment plans comes when the government’s fiscal deficit has touched 115 per cent of the FY20 Budget estimate by November. Besides, revenue from other sources such as taxes is also likely to fall short of the target. The government may miss the tax target of Rs 24.6 lakh crore by at least Rs 2 lakh crore on account of the corporation tax rate cut, lacklustre GST collections, and the economic slowdown. As much as 42 per cent of the revenue collections (excluding cess and surcharge) will go to states.

The government had set a disinvestment target of Rs 1.05 lakh crore for 2019-20. However, in FY20 so far, the government has managed to raise Rs 17,364 crore through disinvestment; 84 per cent of its disinvestment target is yet to be realised.

signals-for-sale-of-iocl’s-refinery-division-

Signals for sale of IOCL’s Refinery Division?

By IndianMandarins 22 Dec 2019

If some well-placed sources are to be believed many senior officials posted at the headquarters of Indian Oil Corporation Limited (IOCL) have started getting signals that Refinery Division may soon be up for sale. Insiders say that instead of presentations on ‘why not to sell Refinery Division’ the discussions appears to have taken a twist; ‘how to sell Refinery Division’. 

air-india-needs-to-survive-till-sold:-lohani-shares-anguish-on-facebook

Air India needs to survive till sold: Lohani shares anguish on facebook

By IndianMandarins 16 Dec 2019

In a fresh plea to the government for funds, the outgoing Chairman of Air India Ashwani Lohani has written a Facebook post saying Air India needs to survive till it is sold. Lohani’s comment comes almost approx. 60 days ahead of completion his term ending 14.02.2020. He recently highlighted the airline’s grim financial health in a letter to the civil aviation ministry.

This is to recall that over the past few months, Air India is seeking government guarantee to raise a Rs 2,000-crore loan. So far, the government has not acted on the request. The airline would default on payment obligations if capital is not raised.

Air India is losing Rs 150-200 crore each month despite 10 per cent year-on-year increase in revenue. Liquidity situation remains extremely tight and salary for the month of November was disbursed on December 11. Civil Aviation Minister Hardeep Singh Puri’s recent remark that the government would shut down the airline if fails to find a buyer has also made travel agents and vendors jittery.

“Air India needs to survive till it is sold. I wonder why is it so difficult for this appreciation to sink in and also that in this environment of disinvestment, expecting a radical improvement bordering on a turnaround is an impractical thought. That output can be given sans input is a grossly impractical thought,” Lohani writes in his post.

disinvestment-of-beml:-govt-initiates-process

Disinvestment of BEML: Govt initiates process

By IndianMandarins 16 Dec 2019

The government is likely to sell its 28 per cent stake in Bharat Earth Movers Limited (BEML) through strategic disinvestment to retain 26 per cent after dilution of its shareholding in the public sector undertaking. The government holds 54.03 per cent stake in BEML.

BEML, a mining equipment maker, has diversified into manufacturing of rail coaches and defence production that already accounts for almost half of its current topline.

Cabinet Committee on Economic Affairs (CCEA) in October, 2016 had given an in-principal approval for strategic disinvestment of 26 per cent equity shares in BEML. Sources said that the government will divest 28 per cent of its stake in the company through strategic disinvestment and there is no plan to demerge the business verticals.

The government has set an all-time high disinvestment target of Rs 1.05 lakh crore, up from Rs 90,000 crore projected in the Interim Budget 2019-20 in February. In 2018-19, the Centre raised Rs 84,972 crore from CPSE disinvestment, while in 2017-18, the figure was Rs 1, 00,056 crore.

CCEA has recently approved strategic disinvestment of its equity shares in five PSUs – BPCL, Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Tehri Hydro Development Corporation (THDC) and North Eastern Electric Power Corporation (NEEPCO).

govt-feels-bpcl-to-garner-bulk-of-proceeds-for-rs-1.05-tn-disinvestment-targets

Govt feels BPCL to garner bulk of proceeds for Rs 1.05 tn disinvestment targets

By IndianMandarins 07 Dec 2019

The government trying to meet the target of Rs 1.05 trillion by disinvestment to infuse liquidity into the market to perk it up is confident of achieving it in 2019-20 financial year even without the Air India sale this year.

It is learnt from the top government sources that the central government is open to the idea of deferring Air India’s stake sale for the next financial year due to some issues within the government career. However, the disinvestment of Bharat Petroleum Corporation (BPCL) is likely to be completed before March 31, 2020 and it will form the bulk of the proceeds.

There are certain complexities involving the Air India privatisation proposal, including the increasing debt that the aviation company, so its disinvestment will go for next financial year.

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Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.

Indianmandarins.com, an initiative of New Media Network, is a multi-media initiative for the fast and real-time dissemination of news and information related to civil services, central PSUs and other institutions that play a critical role in governance, administration, corporate governance, and public life in India. We aspire to provide our esteemed readers with news breaks and situation analysis in the above-mentioned domain of operations. Currently, we are available at www.indianmandarins.com. We are now planning to branch off into print publication and few other related business initiatives.