Govt to keep flying Air India, MTNL ready with revival plan

Both the companies had come under sick units list but the govt is keen to retain its air business

GN Bureau | March 12, 2015


#air india   #mtnl   #psu   #aviation   #telecom  

The civil aviation ministry has that there was no question of closing Air India. Minister of Heavy Industries Anant Geete had said in a written reply to the Lok Sabha that Air India and MTNL were among the many state companies "termed as a sick public sector unit". It raised questions as to whether the government was planning to close such sick PSUs.

Minister of State for Civil Aviation Mahesh Sharma has said it was important to have a flag carrier in the country. Sharma said that the government was committed to pumping in the allocated funds in Air India as part of its turnaround and financial restructuring plan, approved by the then UPA dispensation in 2012.

The government, however, has been trimming the budgetary support to Air India, pushing the airline to hasten towards breaking even.  The government has already pumped Rs 18,400 crore in equity for AI. As part of the restructuring plan in 2012, the government had agreed to put in Rs 30,000 crore as equity till 2020-21 or for a nine-year period.

Meanwhile, Mahanagar Telephone Nigam (MTNL), now in the list of ‘sick’ public sector units (PSUs), has sent a revival proposal to the department of telecommunications (DoT). It has been making operational losses for three years.

According to reports the proposal of the telecom PSU is under consideration. The PSU plans to raise Rs 500 crore through a short-term loan in the next financial year for expansion. Overall, an amount of Rs 805 crore will go towards capital expenditure — for network upgradation and enhancing data services — in 2015-16.

Comments

 

Other News

Gripping graphic narrative helps make sense of pandemics past

The Moral Contagion By Julia Hauser and Sarnath Banerjee HarperCollins, 140 pages, Rs 699 The world has lar

“Globally, there is unprecedented positivity for India”

Addressing the Viksit Bharat Viksit Uttar Pradesh program in Lucknow on Monday, prime minister Narendra Modi launched 14,000 projects across the state, worth more than Rs 10 lakh crore at the fourth groundbreaking ceremony of UP Global Investors Summit held in February 2023. The projects relate to sectors

World’s biggest bird-a-thon begins in India

During the four days from Feb 16, more than a thousand birdwatchers throughout India are coming together with the goal of documenting as many birds as possible across the country’s diverse locations. Over one lakh birdwatchers globally participate in the annual Great Backyard Bird Coun

Comments sought on Draft Guidelines for Prevention of Misleading Advt in Coaching Sector

The Central Consumer Protection Authority has sought public comments on the ‘Draft Guidelines for Prevention of Misleading Advertisement in Coaching Sector’. The draft guidelines are placed on the website of the Department of Consumer Affairs and are accessible through the link:

Electoral bond scheme unconstitutional: Supreme Court

In a landmark judgment, the Supreme Court of India has held the anonymous, unregulated and unlimited funding through electoral bonds and companies as unconstitutional. The five-judge Constitution Bench of the Supreme Court comprising chief justice DY Chandrachud and justices Sanjiv Khanna, B

Interim Budget and frontier technology: Sab ka Vikas, Sab ki Technology

The world is at the cusp of a revolution based on Industry 4.0 and green technologies, including AI, big data, IoT, EVs, solar power, etc., which offer developing countries the opportunity to leapfrog into economic prosperity. However, India’s gross expenditure on R&D (GERD) still stands at a mea

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter