Air India Current Affairs - 2019

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Cabinet approves setting up of SPV for disinvestment of Air India

The Union Cabinet headed by Prime Minister Narendra Modi has given ex-post facto approval for the creation of the Special Purpose Vehicle (SPV) and associated activities for the disinvestment of Air India and its subsidiaries/JV.

Air India Assets Holding Ltd.

  • Debt of Air India Ltd. amounting to Rs. 29,464 crore would be transferred to Air India Assets Holding Ltd.
  • The subsidiaries which are not part of Air India strategic disinvestment viz. Air India Air Transport Services Ltd. (AIATSL), Airline Allied Services Ltd. (AASL), Air India Engineering Services Ltd. (AIESL) and Hotel Corporation of India Ltd. (HCI) would be shifted to the special purpose vehicle.
  • Non-core assets, painting and artefacts and other non-operational assets of Air India Ltd would also be transferred to the SPV.
  • The board of directors of the SPV includes Director Finance as well as the chairman and managing director of Air India along with joint secretaries of Corporate Affairs, Investment and Public Asset Management, Expenditure, Economic Affairs.

The disinvestment proceeds from the Air India would be utilized to set off the working capital loan liability of Air India which are not backed by any asset and warehoused in the same SPV.

Month: Categories: Business, Economy & BankingUPSC

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Public Enterprises Survey 2017-18

The Public Enterprises Survey 2017-18 was tabled in the Parliament. The Survey mapped the performance of the various central public sector units. The survey was undertaken by the Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises.

Findings of the Survey

The major highlights of the performance of CPSEs are:

  • Indian Oil Corporation, ONGC and NTPC were the top three most profitable PSUs in 2017-18. They contributed 13.37 per cent, 12.49 per cent and 6.48 per cent, respectively to the total profit earned by CPSEs (Central Public Sector Enterprises) during 2017-18.
  • The fourth and fifth positions were occupied by Coal India and Power Grid Corporation in the list of top 10 profit making CPSEs in the 2017-18 fiscal.
  • The Power Finance Corporation entered into the list of the top ten profit making CPSEs and the Mangalore Refinery & Petrochemicals Ltd did not feature in the latest list.
  • The top ten profit making CPSEs accounted for 61.83 per cent of the total profit earned by all the 184 profit making state-owned firms during the year 2017-18.
  • BSNL, Air India and MTNL incurred the highest losses for the second consecutive year. They contributed 52.15 per cent of the total loss incurred by CPSEs in 2017-18.
  • The top ten loss-making PSUs claimed 84.71 per cent of the total losses made by all the 71 CPSEs.
  • Bharat Coking Coal Limited which incurred huge losses in 2017-18 entered into the list of top ten loss making CPSEs.
  • India Infrastructure Finance Co and Eastern Coalfields, which were profit-making PSUs till 2016-17, have started incurring losses and have featured in the list of top ten loss-making state-owned firms during 2017-18.

The survey notes that there were 339 Central Public Sector Enterprises (CPSE) in 2017-18, out of which 257 was in operation. Remaining 82 of the CPSEs were under construction.

Month: Categories: Business, Economy & Banking

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