BMS opposes Air India sale, asks govt to revisit decision

By: |
Published: January 28, 2020 8:12:25 PM

The union is of the view that selling PSU to private players is not going to help the government in mobilizing resources.

air india, air india privatisationThe union said that it is unfortunate that they (PSUs) are being sold in the name of resource mobilization to fund social spending.

RSS-affiliate Bharatiya Mazdoor Sangh (BMS) on Tuesday opposed Air India sale, and urged the government to think over this decision.

“Ever since inception, public sector undertakings have been the driver of growth and value creation. Perhaps they are the only enterprises in India that fulfilled all the objectives laid out according to the Industrial Policy Resolution of 1956,” a BMS statement said.

The union also said that it is unfortunate that they (PSUs) are being sold in the name of resource mobilization to fund social spending.

The union is of the view that selling PSU to private players is not going to help the government in mobilizing resources and funding social spending because privatization does not free the government from its responsibilities.

There are certain segment in which both public as well private sector enterprises are not being able to perform and there are cases in which private players failed to generate own resources, they simply took the money in form of loans from banks (many in the public sector) and then they failed to repay the loan, deepening non-performing asset crisis, it added.

The PSU also pointed out that while calculating profit and loss of Air India one need to think of the fact that it has been operating many of the low-profit or loss-making routes only to serve the passenger and connecting people with one another promoting national unity – in which any private player will not be operating.

Privatisation of Air India can have a cascading impact; like many of those airports which will lose the flight may face further crises, many of the emerging cities may face the crisis of connectivity etc, it added.

Keeping these issues in mind the BMS urge the government to think hundred times before going for the disinvestment of Air India, the union said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Godrej Properties sees strong sales this year despite COVID-19; cash flow may pose challenges
2Paytm Mall plans new tech jobs in Bengaluru, set to hire 300 people; trims losses by this much
3Robot uprising begins? Microsoft fires journalists, replaces them with AI