Category Archives: Disinvestment

Disinvestment of LIC – Selling National Assets.

10 Monday Feb 2020

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The announcement in the Central budget that shares of LIC will be sold is an attack on the prime PSU in the country. LIC which was started in 1956 with Rs. 5 crore as capital is the biggest earning PSU in the country. It’s service are excellent and market share is above 70%.

The argument of the Centre that only loss making PSUs are being sold is exposed as utter lie. BPCL, LIC are very much profitable and giving handsome dividend to the government. The united forum of LIC employees as well as oil companies are on the struggle path against the government’s attack on the PSUs.

We extend our support and solidarity.

PMO meets to expedite strategic sales of PSUs. Air India, AIAISL, BEML, Dredging Corporation etc. included

06 Wednesday Feb 2019

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The Prime Minister’s Office (PMO) Tuesday held a meeting to work out steps to expedite the strategic sale of PSUs identified by government think-tank Niti Aayog, a senior official said.

Niti Aayog has identified 35 PSUs, including Air India, Air India’s subsidiary AIATSL, Dredging Corporation, BEML and Scooters India for strategic sale.

“There is not much headway in strategic sale of CPSEs because of opposition by certain organisations. The PMO tried to identify these bottlenecks and come up with the road map to expedite the whole process,” the official, who did not wish to be identified, told PTI.

The government has set a target of Rs 90,000 crore to be mopped up from share sale of central public sector enterprises (CPSEs) in financial year 2019-20, higher than the Rs 80,000 crore target this fiscal.

Niti Aayog recently submitted to the Department of Investment and Public Asset Management (DIPAM) the fifth list of CPSEs, profitable as well as non-profitable, which can go for a strategic sale. This takes the total number of PSUs identified for strategic disinvestment to 35.

The companies which have been shortlisted for strategic sale include Air India, Air India’s subsidiary AIATSL, Dredging Corporation, BEML, Scooters India, Bharat Pumps Compressors, and Bhadrawati, Salem and Durgapur units of steel major SAIL. (PTI)

CPSTU Convention decides for agitational programmes on Disinvestment / sale of PSUs etc.

09 Monday Apr 2018

Posted by in BSNLEU, Disinvestment, PSU

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Central Public Sector Trade Unions (CPSTUs) decided to intensify struggles against privatisation and to settle wage revision.
The Central Public Sector Trade Unions conducted a one day convention at Ernakulam, yesterday. 340 delegates participated in the Convention, from all the major Central Public Sector Undertakings. Com. Tapan Sen, General Secretary, CITU, inaugurated the Convention. Com.P.Abhimanyu, GS, BSNLEU, addressed the convention, and gave a detailed picture of how the government is trying to finish off BSNL, by forming the Subsidiary Tower Company. He also narrated about the sustained struggles of the BSNL employees to safeguard BSNL. The GS, BSNLEU also briefed the convention about the developments in the wage revision issue of the BSNL employees. The meeting decided the following action programme on the key issues:-

To conduct a nationwide campaign programme in all the Public Sector undertakings.
To send Fax to the Prime Minister and Minister of Heavy Industries.
To conduct a National Convention on 25th May, at New Delhi, against privatisation, Fixed Term Employment and on wage revision issue.
calendar 09 – Apr – 2018
Massively organise dharnas on 12-04-2018, demanding the rolling back of the Subsidiary Tower Company.
Compelling the government to roll back the Subsidiary Tower Company is the priority task of the trade union movement of BSNL. To achieve this, the All Unions and Associations of BSNL has called on the BSNL employees to organise massive dharnas throughout the country on 12-04-2018. CHQ calls upon the circle and district unions to coordinate with the other constituents of the AUAB, and to mobilise maximum number of Non-Executives and Executives in the dharnas.(Courtesy: BSNLEU website)

Stop Privatisation of Air India – Employees’ Unions to the Prime Minister

06 Friday Apr 2018

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MUMBAI: Eight employee unions of Air India have written to Prime Minister Narendra Modi raising serious concerns about the disinvestment of the national carrier and have sought an alternative revival plan.
In a letter, signed by representatives of the eight unions, they have also flagged possibility of job losses in case of privatisation.

Air Corporation Employees Union, All India Service Engineers’ Association, Air India Employees Union, Aviation Industry Employee Guild, Air India Aircraft Engineers’ Association, All India Aircraft Engineers’ Association, Air India Engineers Association and United Air India Officers Association have written the letter.

Together, these unions represent more than 10,000 Air India employees.

The Civil Aviation Ministry has sought Expression of Interest (EoI) from potential bidders for a 76 per cent stake sale in loss-making Air India as well as divestment of two of the carrier’s subsidiaries.

“We strongly protest Government of India’s move to privatise or disinvest Air India/subsidiaries as it is against the interest of the country and urge the government to review its decision… and explore the possibility of an alternative to disinvestment/ privatisation,” it said.

According to the letter, a copy of which has been seen by PTI, the unions said Air India can be restored to its “pristine glory” if debt worth Rs 30,000 crore is waived off or the loan is restructured and a proper roadmap is put in place with effective management.

Referring to the previous NDA government’s decision to sell two Centaur Hotels properties in Mumbai, the letter said there have been job losses after it.

“In our view, privatisation of Air India should be completely avoided with an effective revival plan with the participation of employees. It is also urged to write off/ restructure the loan for Air India revival instead of giving benefit to any private entity,” the letter, dated April 3, said.

Among others, the unions noted that the airline has never defaulted on interest repayments. (Courtesy: Times of India)

Protest privatisation of Air India, the Jewel of the Nation.

29 Thursday Mar 2018

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The decision of the central government to disinvest 76% shares of Air India, the national carrier called the Jewel of the Nation, is completely against the interest of the nation and is part of the aggressive privatisation move of the government to eliminate all PSUs to suit to the requirement of the private corporates to grab maximum profits. There is no justification for the privatisation of Air India, except that by doing so, the private carriers will get a hay day for raising the charges and garnering huge profits at the cost of the passengers.

Air India was one of the profit making excellent PSUs till the government merged Indian Airlines with it and ordered a large number of planes paying huge amount, when that much number of planes were not at all necessary and viable.
It is reported that the bid worth for Air India is fixed at Rs. 5,000 crore. With its large number of planes, the space it has got in all the airports, the machinery, the buses and other infrastructure, Air India will be having an asset of more than Rs. 20,000 crore at the least. Of course, privatisation is a process through which the valuable PSUs are gifted to the corporates for name sake price.

Strong protest should come up against this anti-people move of the government and the privatisation should be defeated.

NALCO posts profit of Rs.722 crore

11 Sunday Feb 2018

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National Aluminium Company Limited (NALCO) posted an increased Rs. 722 crore profit in the quarter ending December 2017. The profit in the same quarter in 2016 was Rs. 235 crore and in 2015 Rs. 144 crore. It is reported that there is 207% growth for the PSU. Hearty Congratulations to the workers and management of NALCO who made this profit!

It is to be remembered that the Bajpayee government wanted to sell NALCO in 2001, at the same time as it sold 51% of shares of Bharath Aluminium Company Limited (BALCO) to Sterlite Industries. But the trade unions and the people of Orissa made such a strong protest and agitation that the government was compelled to turn back from the disastrous move.

Now the Modi Government is in a mad rush for selling the PSUs, the valuable assets of the people, to the corporates. It has to be fought and defeated as was done in the case of NALCO. It is not impossible.

Parliament Standing Community against disinvestment / privatisation of Air India.

08 Monday Jan 2018

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The Parliament Standing Committee on Transport, Tourism and Culture has suggested to the government that instead of privatisation / disinvestment of Air India, it should be given at least five years for revival. Instead of privatisation / disinvestment, an alternative for improvement of the national carrier, which is the pride of the nation, should be explored, it said.

Certainly. The government should completely withdraw from its move to privatise / disinvest Air India, the pride of the nation.

Air India moves fast for disinvestment

22 Wednesday Nov 2017

Posted by in Disinvestment, PSU, Uncategorized

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Despite strong protests from the unions in Air India and the Central trade Unions, Air  India is moving fast for strategic disinvestment as per the decisions of the government. Private companies have been pressing the government to keep away Air India from the sky so that they can exploit the travellers without any limit and be the unquestioned kings of the sky.

Though some of the government spokesmen were telling that Air India disinvestment has not been decided, the Air India management is moving forward with the process. Five internal project teams have been constitutes as reported in Hindu dated 22-11-2017 to work towards ensuring that the timelines set by the government in the disinvestment matter is achieved.

It is necessary that the disnvestment move of the government is stopped.

 

Another Ministerial Group – this time for strategic disinvestment of PSUs

17 Thursday Aug 2017

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Accepting the proposal of the ‘365 X 24 hours working’ Department of Disinvestment, the central government has constituted a Group of Ministers with Finance Minister, Minister for Road Transport and High Ways and Minister for Administrative Department to decide on the terms and conditions of the sale of the public sector units.

The Cabinet also approved empowered the Core Group of Secretaries to take policy decisions on the procedural issues of these strategic sales of PSUs.

It seems that the government wants to gift all the PSUs to the corporates before the 5 year term of the Modi Government is over.

Private participation mandatory for Metro Rail projects -Central Government.

17 Thursday Aug 2017

Posted by in Disinvestment, Neo-liberal policy

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It seems that the Modi Government will go to any extent for helping the corporates and the big private business. The latest is the government order making it mandatory for any metro rail project to have private participation.

The Central Cabinet has adopted a new policy for expanding and regulating metro rail projects, in which it is mandatory for private participation. The success of the metro projects in Delhi, Kolkata  and other metro cities and the collections being received has been in the eyes of the corporates and private business for some time. The central government, which is always for enriching the corporates has now made this new policy of mandatory private participation in metro projects. It is to be read in connection with the privatisation of the hundreds of railway stations and handing over the huge land assets to them for minting money.

The policy also stipulates for profitable projects. Of course, when private participation is there, it should be profitable, since the corporates should not be made to lose their funds for social responsibility.