Air India divestment: Staff colonies to be vacated in 6 months; govt to make good any shortfall in PF of employees

Aug 24, 2021

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NEW DELHI: Getting ready for the upcoming privatisation of Air India (AI), the federal government has requested the airline administration to make sure workers vacate firm lodging in AI residential colonies inside six months of the Maharaja getting a brand new proprietor.
The administration has additionally been directed to hunt the nod from no less than half the employee-members of the 2 provident fund (PF) trusts in order that the investments from them might be liquidated and transferred to Workers Provident Fund Organisation (EPFO) earlier than divestment.
The Union dwelling minister Amit Shah-headed GoM on AI divestment has determined the federal government will make good any shortfall in liquidation values of funding of present PF trusts, if wanted by means of budgetary help.
The federal government expects privatisation of AI to be accomplished by the tip of this fiscal, with the Tata Group extensively seen because the frontrunner to get the airline based by the venerable J R D Tata again.
The aviation ministry has despatched a sequence of communication to AI chairman Rajiv Bansal on varied points. Amongst them are:
Modalities of vacating and handing over AI colonies put up disinvestment: The group of minister for AI divestment has determined that “AI workers might proceed to remain at residential colonies of the corporate put up divestment for a interval of six months or until the property is monetised, whichever is earlier. Acceptable binding authorized and different preparations together with monetary disincentives must be formulated to allow immediate trip of properties by workers.”
The ministries instructed AI that workers won’t be eligible for HRA or lease hire allowance until they occupy this lodging and the federal government/AI won’t be obliged for the foremost repairs and renovation of those colonies.
AI administration has been requested to arrange and submit a binding mechanism for vacating these houses by workers promptly put up divestment.
Switch of provident fund (PF) of AI from Provident Act 1925 to EPFO beneath EPF Act 1952: Speaking the GoM’s determination on this concern, the ministry has knowledgeable AI that, “Voluntary switch of PF, presently operated by means of two separate trusts, to EPFO earlier than divestment for PF advantages of workers. Investments in present PF trusts should be liquidated previous to switch to EPFO and it could be ensured that the absolute best realisable worth investments (is) achieved. It was additionally determined that in case of shortfall in liquidation values of funding of present PF trusts, it could be made good by AI/authorities of India, if want be by means of budgetary help.”
The ministry has requested AI to arrange for the modalities of switch of PF funds, together with getting the consent of over 50% workers of every belief.
AI has been requested to finish the method on the earliest. AI additionally has been instructed to offer the explanation for any shortfall in liquidation values of investments within the two trusts on precedence.
Medical amenities to retired workers of AI put up disinvestment: Speaking the GoM’s determination on this concern, the ministry has knowledgeable AI that medical advantages will probably be supplied to each retiring and retired AI workers. “Options for provision of thes advantages by means of CGHS can be explored.” An identical mannequin could possibly be adopted for different PSUs being privatised.
Accordingly, AI has been requested to submit particulars of all present retired workers and their spouses; those that attain superannuation age of 58 in AI, AI Engineering Companies and AIASL on the date the transaction (AI privatisation) is closed; those that both flip 55 on that date or have accomplished 20 years of service in these three corporations; probably expenditure concerned and the way this scheme will probably be applied for these workers put up divestment.



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