Category Archives: PSU

Matters connected with Public Sector Units (PSU)

PSUs surplus cash will be taken by Centre

24 Tuesday Dec 2013

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The Central Government is thinking of taking the cash surplus of the profitable PSUs by ordering higher % of dividend to them. These PSUs include BEL, BHEL, Coal India, BPCL, Gail, MMTC, NALCO,NLC,NTPC, Oil India, ONGC etc.
The Government is expecting about Rs. 27,000 crore more as dividend from these PSUs in addition to the Rs. 37,000 they are liable to pay.

The policy of the government is intended to divest all the cash surplus of the Profitable PSUs. The cash surplus of Rs. 40,000 crore with BSNL was taken over by government in the name of spectrum charges, notional loan etc. by the government. Now in the other PSUs it is increasing the % of dividend. Once any PSU becomes sick, then there is no help, though it is the policy and action of the government which made it loss making.
Whatever be the name of taking the money from the PSUs, the main intention is to make the PSUs sick. Of course the government will get the money also.
This anti-PSU policy has to be opposed and defeated by the people.

Air India sells ‘Dreamliners’ and lease it back for operation

22 Sunday Dec 2013

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I am giving below a report on the sale of the recently purchased Dreamliner Planes by the Air India to mop up funds and then to lease it for its own use. Is it a profitable Option? May be.

MUMBAI, DEC 22:
National carrier Air India plans to raise up to $ 840 million by way of sale of its seven Boeing 787-8 Dreamliner planes, which it will then leaseback, to pay off the bridge loans taken against these aircraft.

A part of the proceeds will also be used for operational requirements, sources said here.

The carrier has already taken the delivery of 11 Dreamliners and three more are expected to join the fleet by March of next year.

“We have put seven Boeing 787-8 Dreamliner planes for sale and leaseback to mop up funds,” AI sources told PTI here.

“We expect to raise funds to the tune of $770-840 million as the airline is likely to get around $110-120 million per plane,” they said.

The funds raised will be used to pay off the bridge loans taken against these planes, they said, adding that, “the remaining (proceeds) will be used for operational requirements of the company“. (Business Line)

Complete Strike by Bank Employees on 18th December

19 Thursday Dec 2013

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The strike by the Public Sector Bank employees on 18th December 2013, completely paralysed the banking sector. The one day strike was called by the United Forum of Bank Employees (UFBE), consisting of all the Bank Employees Unions and representing about 70 lakh of workers on the demand of wage rise, against government proposal to issue bank licence to corporates etc. We congratulate the Bank employees for the successful strike and demands the government and the Indian Bank Association to concede the just demands of the Bank Employees.

Bank Employees will go on Strike on 18th December

16 Monday Dec 2013

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The discussion between the Indian Bank Association and United Forum of Bank Unions (UFBU) held to day failed and the latter has decided to continue with the decision to organise the strike on 18th December 2013.
Our full support and solidarity to the strike of the Bank Employees.

Government decides not to proceed with disinvestment in CIL due to Protest by Unions.

13 Friday Dec 2013

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The Government had declared 10% immediate disinvestment in Coal India Ltd. and was proceeding in the matter. All the unions in the CIL had issued notice for strike against disinvestment in this month itself. The government is reported to have changed its decision in view of the proposed strike. However, the government wants more dividend from the PSU to make up the financial deficit.
We congratulate the Coal India Workers for their success in stopping the Disinvestment for the present.

Parliamentary Committee opposes Bank Licence to Industrial Houses.

10 Tuesday Dec 2013

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The Parliamentary Standing Committee on Finance headed by Shri Yeshwant Sinha has strongly opposed the proposal of the Government to grant bank licence to the Industrial and corporate houses. The latter have been pressing the government for bank licences and the govt. has conceded their demand.
The Parliamentary Standing Committee has warned that if such licences are given, the situation that existed before the nationalisation of banks may return. The Committee pointed out that there is no situation for a pre-nationalisation period being restored.
The government should accept the recommendation of the Standing Committee and discard its proposal for granting bank licence to industrial houses.

Air India asks its employees who are on sabbatical to come back to duty

08 Sunday Dec 2013

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Air India, five years back, had offered its employees to go on sabbatical, meaning to be out of duty with out salary for higher studies etc., for five years as a method of reducing its salary expenses and austerity measure. The five years are now over, and the AI management has given orders that those on sabbatical has either to return back or quit.
It is reported that 213 employees had taken sabbatical at that time. Many have got other jobs, some have gone abroad etc.
The Air india has got 27,000 employees and about 1/4th of them are to retire within 3-4 years. Under these circumstances, if fresh recruitment is not taken in addition to those coming back from sabbatical, the proper functioning of the carrier will be adversely affected.

3 year tenure for CPSE heads

06 Friday Dec 2013

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The government appointed committee with Shri S.K.Rangoota has recommended 3 years tenure for the PSE heads to ensure some continuity. At present there is the condition, that the official should have two years balance service for being appointed to the high level post. The recommendation if accepted will ensure three years tenure, so that even after retirement he/she can continue in the post till the three years are over.

There are 260 CPSEs at present out of many PSEs in which posts, including that of CMDs are not filled up. 161 are profit making while another 63 are in loss. Others are non-functioning.
The total workforce together in all the CPSEs is around 14 lakhs.

Coal India Workers on strike from 17th December against Disinvestment

06 Friday Dec 2013

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The decision of the government to disinvest 10% of stakes in Coal India Limited (CIL) is strongly opposed by the unions in the PSU. At present the government is having 90%, out of which another 10% is proposed to be disinvested. The Unions have given a call to go on a 3 days strike against the same from 17th December.
Sensing the strong opposition of the workers, the government is proposing to disinvest 5% only at present. It does not want a strike in the strategic coal sector, along with the already crises due to the serious corruption cases.
But the Unions are sticking to their position, and rightly so. They are continuing with the strike preparation demanding that no disinvestment should take place in CIL.
Our complete support and solidarity to the CIL workers in their struggle to defend the PSU.

NPA (Bad Loans) of PSU Banks reached Rs. 1,64,000 crore!

05 Thursday Dec 2013

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According to the reports, the Non-Performing Assets (NPA) or the loans taken from the banks and which have not been returned, of the Public Sector Banks has reached a huge Rs.1.64 Lakh crore in 2013. This is an increase of more than four fold increase during the last 5 years. The NPA was Rs. 39,000 crores in 2008.
Almost all the big corporates seem to be in the list of offenders. Many of them have taken hundreds of crores of rupees and failed to pay or did not pay.
According to the list of corporates who did not pay back the loans taken published by the All India bank Employees Union, Vijay Mallya’s King Fisher tops with Rs. 2,673 Crore dues.

The Bank Unions have also demanded that the Banks should publish the list of all offenders who did not repay the loans. They also demanded that inquiry should be ordered whether these loans were sanctioned as per rules or were given in violation of the existing rules and fix the responsibility.

The favour shown to the corporates and private big business, especially after the implementation of the neo-liberal policies have resulted in such distortions and violations of laws in many areas, and banking sector is not any different.

The Government and the Bank authorities should take immediate action to recover the amounts which will strengthen the banks and put an end to the loot of the public money through the bad loans.