MEASURE ON LABOUR PAVES WAY FOR PSU DISINVESTMENT

Article Abstract:

In order to disinvest in sick public sector units (PSUs) and downsize labour, the Union Budget 1998-99 has proposed to make the retrenchment compensation package more attractive and encourage voluntary retirement scheme (VRS). Retrenchment compensation under the Industries (Development and Regulation) Act, which offers 15 days wages for each completed year of service, has been enhanced to 45 days subject to maximum wage or salary accruable on the basis of the balance of years of service left. The workers of the PSUs will also be eligible for a maximum of 60 months or five years salary or wages as compensation for those who have completed not less than 30 years of service, will get more than the normal VRS. For this purpose, a separate restructuring fund will be set up and the PSUs will be advanced funds from the budget to offer compensation package to the workers. (gsh)

Comment:

India: Union Budget for 1998-99 includes proposal to make retrenchment compensation package more attractive

Government regulation (cont), Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Pension & Benefit Regulation, Pensions

---

A LEAF OUT OF THE DISINVESTMENT PANEL REPORT

Article Abstract:

A study has revealed that Air India operates only a few flights in very few sectors as it has a small fleet of just 26 aircraft. The small fleet has disabled Air India from providing frequent links on profitable routes. Air India has not been able to optimally use its capacity despite having 47 percent of India's total landing rights. The airlines share in the traffic has come down to 22 percent from over 50 percent in the late 1970s due its inability to expand with the rise in traffic in and out of India. It had debt equity ratio of 9.86:1 as of March 1998 (1.82:1 in 1994-95). (ag)

Facilities & equipment, Scheduled Passenger Air Transportation, Domestic Scheduled Air Service, Domestic airlines, Air India

---

GOVT SCRAPS DISINVESTMENT PROPOSALS OF 3 CIL UNITS

Article Abstract:

The Coal Ministry has scrapped the divestment proposals of the three profit-making subsidiaries of Coal India Ltd (CIL). CIL's subsidiaries include Northern Coalfields Ltd, Western Coalfields Ltd and South Eastern Coalfields Ltd. The Coal Ministry plans to undertake a capital restructuring programme to reduce the capital base of the three companies. The Disinvestment Commission had recommended divestment of government stake in the three subsidiaries. (gsh)

Comment:

India: Coal Ministry scraps the divestment proposals of the three profit-making subsidiaries of Coal India

Government domestic functions, Coal, Coal Mining

Similar abstracts:

• Abstracts: GOVT EASES NORMS FOR IT COS' INVESTMENTS, NRI INFLOWS RBI PLANS NORMS ON CAPITAL FUNDING FOR SOFTWARE COS GOVT SETS UP NATIONAL IT TASK FORCE
• Abstracts: SAVINGS AND INVESTMENT GLOOMY BUT CREDIBLE. GIC MULLS NON-LIFE SAVINGS POLICY
• Abstracts: ELRTS HITS RAILWAY BLOCK JAPANESE LED GROUP BAGS DELHI METRO CONSULTANCY DEAL PROVISION FOR RAIL WAGONS FALLS SHORT OF EXPECTATIONS
• Abstracts: BANKS ASKED TO IMPLEMENT GUPTA PANEL SUGGESTIONS BANKS' OVERSEAS OFFICES UNDER RBI FOCUS 40% FDI FOR BANKING VIA AUTOMATIC ROUTE ON CARDS
• Abstracts: MANIPAL FINANCE CORPORATION LIMITED WIPRO FIN TO CONVERT PREF SHARES INTO EQUITY ALF, FIs TO RAISE Rs600 CR THROUGH SECURITISATION

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.