Aviation Secretary Rajiv Bansal is responsible for the post of CMD of Air India. In a message issued to the employees, he said that emphasis should be laid on saving capital along with controlling their daily expenses. Capital should be spent only when absolutely necessary. The disinvestment process is in the final stages and the bidder has been asked to complete all the formalities at the earliest.
There are clear instructions to the Management of the Company that no fresh contracts shall be entered into without the approval of the Finance Director and CMD. However, this restriction will remain in place till March 31, 2022. All directors, executive directors and heads of departments have also been warned of strict adherence to these rules, the order said. It is worth noting that the Tata group has made Air India its name by bidding for 18,000 crores.
After the privatization of Air India, the government is preparing to monetize its four subsidiaries.
After the successful privatization of Air India, the central government is now in the process of monetizing its four subsidiaries. Alliance Air is included in these four companies.
Apart from this, immovable assets worth Rs 14,700 crore, including land and buildings, will also be monetised. Tuhin Kant Pandey, Secretary, Department of Disinvestment and Public Asset Management (DIPAM), said his department will now work on a plan to monetise and reduce liabilities of the four Air India subsidiaries held by AIASL.
The four subsidiaries of Air India, Air India Transport Services Ltd., Airline Allied Services Ltd., Air India Engineering Services Ltd. and Hotel Corporation of India Ltd., as well as non-critical properties, paintings and artefacts and other non-operational assets were handed over to it.
On October 8, the government had announced handing over the ownership of debt-ridden national carrier Air India to Tata Sons.
Pandey, who played a key role in the privatization of Air India, said, “We have plans to monetize the assets of AIASL. However, settling the liabilities and assets of AIASL is a huge task.