Air India privatisation: Govt to start roadshows in Singapore this week

Agencies
November 11, 2019

New Delhi, Nov 11: The government will start roadshows for privatisation of ailing state-run Air India this week in Singapore with Disinvestment Secretary T.K. Pandey along with senior aviation ministry and Air India officials to brief the prospective buyers for complete stake sale in the airline.

Sources said Pandey will be in Singapore this week along with senior aviation ministry and Air India officials to meet prospective bidders, address their concerns on Air India debt position, employee issues, and start the roadshows.

There are possibilities now for Air India Expression of Interest (EoI) to be floated this month after this meeting. The national carrier has a debt of Rs 57,000 crore and the bids will be invited for 100 per cent stake.

Once the roadshows start, this will mark the start of privatisation of Air India at the ground level, sources said.

Civil Aviation Secretary Pradeep Singh Kharola and Air India management have been discussing with the trade unions assuring them of security even after privatisation. The unions are opposed to privatisation fearing job losses.

As part of efforts to clean up the balance sheet of Air India before stake sale, around Rs 30,000 crore of its debt is proposed to be repaid by way of proceeds from the issuance of bonds by its special purpose vehicle, Air India Asset Holding Ltd (AIAHL).

AIAHL has already garnered a total of Rs 21,985 crore by way of bond issues and the proceeds would be utilised to pare the debt of the national carrier. It has an employee strength of 20,000 and has a market share of 13 per cent.

Last year, the government had floated the EoI for Air India for 76 per cent stake sale but it did not get a single bidder. Recently, the Cabinet approved changes in the process of disinvestment where the prospective bidders will be heard in the roadshows before EoIs are floated so their concerns are addressed while drawing up the Expression of Interest and government gets investors' interest in the CPSEs (central public sector enterprises).

The Air India stake sale also did not get any response last year as investors feared government interference with the remaining 24 per cent stake, Centre for Asia Pacific Aviation had said in a report. Now that hurdle has been removed.

Air India posted an operating loss of around Rs 4,600 crore in the last financial year mainly due to higher oil prices and forex losses but the debt-laden carrier expects to turn operationally profitable in 2019-20, according to senior officials.

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News Network
April 25,2024

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The Election Commission of India on Thursday announced that it had taken cognisance of violations to the Model Code of Conduct by both Prime Minister Narendra Modi and Congress leader Rahul Gandhi.

While Modi has indulged in a diatribe against Muslims, without naming them, using terms like 'infiltrators' and 'those with more children', Rahul has been accused of making a false claim about 'rise in poverty'.

Both the BJP and INC have raised allegations of causing hatred and divisions based on caste, religion, language, and community, ANI reported.

While the EC had initially refused to comment on Modi's speeches, sources had told PTI that the commission was 'looking into' the remarks made by the BJP leader.

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News Network
April 25,2024

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Electronics Corporation of India Ltd and Bharat Electronics Ltd have refused to disclose the names and contact details of the manufacturers and suppliers of various components of EVMs and VVPATs under the RTI Act citing "commercial confidence", according to RTI responses from the PSUs to an activist.

Activist Venkatesh Nayak had filed two identical Right To Information applications with the ECIL and BEL, seeking the details of the manufacturers and suppliers of various components used in the assembling of the electronic voting machines (EVMs) and voter-verifiable paper audit trail (VVPATs).

The VVPAT is an independent vote verification system which enables electors to see whether their votes have been cast correctly.

The ECIL and the BEL, public sector undertakings under the Ministry of Defence, manufacture EVMs and VVPATs for the Election Commission.

Nayak also sought a copy of the purchase orders for the components from both PSUs.

"Information sought is in commercial confidence. Hence details cannot be provided under Section 8(1)(d) of the RTI Act," BEL said in its response.

A similar response was sent by ECIL which said the details requested are related to a product which is being manufactured by ECIL, and third party in nature.

"Disclosing of details will affect the Competitive position of ECIL. Hence, Exemption is claimed under section 8(1) (d) of RTI ACT, 2005," it said.

In response to the purchase order copies, ECIL's central public information officer said the information is "voluminous" which would disproportionately divert the resources of the Public Authority.

"Further, the information will give away the design details of EVM components. The same may pose a danger to the machines produced. Hence, the exemption is claimed U/s 7(9) and under section 8(1)(d) of RTI Act, 2005," ECIL said.

Section 8(1)(d) of the RTI Act exempts from disclosure the information, including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information.

Section 7(9) of the Act says the information shall ordinarily be provided in the form in which it is sought unless it would disproportionately divert the resources of the public authority or would be detrimental to the safety or preservation of the record in question.

"I don't know whose interests they are trying to protect against the right to know of close to a billion-strong electorate. ECIL said that disclosure of the purchase orders will reveal the design details of the components and this may pose a danger to the machines produced. ECIL did not upload even a signed copy of its reply on the RTI Online Portal," Nayak said.

He said it is reasonable to infer that the two companies are not manufacturing every single item of the EVM-VVPAT combo or else the two companies would have replied that they are manufacturing all these components internally without any outsourcing being involved.

"But the electorate is expected to take everything about the voting machines based on what the ECI is claiming in its manuals and FAQs," Nayak said.

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News Network
April 23,2024

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Congress workers protested outside the home of Nilesh Kumbhani, the party's candidate from Gujarat's Surat Lok Sabha seat whose nomination form was rejected due to alleged discrepancies, as he was likely to join the BJP, sources said on Tuesday.

The protest came a day after the BJP's Mukesh Dalal was declared the winner from the party stronghold following the withdrawal of all the other eight candidates in the fray.

The sources said that the protesters called Kumbhani a "traitor" and "killer of democracy", adding that he could join the BJP as early as this week.

Kumbhani's nomination form was rejected after he was unable to present even one of his three proposers before Returning Officer Sourabh Pardhi.

The BJP had raised questions about the discrepancies in the signatures of three proposers in his nomination form.

The nomination form of Suresh Padsala, the Congress' substitute candidate from Surat, was also invalidated, pushing the party out of the poll fray in the BJP stronghold.

In his order, Pardhi said the four nomination forms submitted by Kumbhani and Padsala were rejected because at first sight, discrepancies were found in the signatures of the proposers, and they did not appear genuine.

The Lok Sabha elections in the Surat seat was supposed to take place on May 7.

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