New Delhi, Jan 14 (PTI) The government is exploringoptions of absorbing Air India employees in public sectorenterprises and voluntary retirement package as it moves aheadwith the airline's disinvestment amid stiff opposition fromworker unions, sources said.
While foreign direct investment of up to 49 per cent hasbeen allowed in the debt-laden carrier, efforts are on toensure a smooth strategic disinvestment and a group ofministers are weighing various options.
Air India, estimated to have a debt burden of more thanRs 50,000 crore, is staying afloat on taxpayers' money and thedivestment plan is aimed at reviving the airline's fortunes.
Sources in the know said the government is mullingproviding airline employees the option of joining publicsector companies.
The possibility of having a VRS package is also underconsideration, sources said while adding that a final decisionis yet to be made.
"Various options are under consideration to protect theinterests of the employees," Civil Aviation Secretary R NChoubey told PTI.
His response came to queries on whether the government islooking at giving Air India employees the option to joinpublic sector firms apart from extending VRS package.
Air India and its subsidiaries have around 29,000employees, including those on contract.
A group of ministers is in the process of finalising themodalities for the proposed strategic stake sale andexpression of interest is likely to be invited from bidderssoon.
Various Air India unions are opposed to the divestmentplan.
On January 10, the government allowed overseas entities,including foreign airlines, to own up to 49 per cent stakeunder the approval route in Air India subject to certainconditions.
"Substantial ownership and effective control of Air Indiashall continue to be vested in an Indian national," thegovernment had said.
Civil Aviation Minister Ashok Gajapathi Raju had saidpermitting 49 per cent foreign direct investment in Air Indiabrings the airline at par with other domestic carriers anddoes away with the preferential treatment that was extended tothe national carrier.
The move has also been opposed by the Centre of IndianTrade Unions (CITU) and RSS-affiliated Swadeshi Jagaran Manch,among others.
Meanwhile, a parliamentary panel is likely to suggestthat Air India should be given at least five years forrevival.
The Parliamentary Standing Committee on Transport,Tourism and Culture concluded that the government shouldreview its decision to privatise or disinvest Air India andexplore the possibility of "an alternative to disinvestment ofour national carrier which is our national pride".
Under a turnaround plan approved by the previous UPAregime, Air India is to receive up to Rs 30,231 crore from thegovernment subject to meeting certain performance thresholds.
The ten-year bailout package began from 2012. PTI IAS RAMMKJ.
This is unedited, unformatted feed from the Press Trust of India wire.