In a controversial decision, Union Cabinet on Wednesday “in principle” approved “strategic disinvestment” of Air India and its five subsidiaries. A body known as Air India-specific Alternative Mechanism will be constituted for this purpose to look into the several aspects of the debt-ridden National carrier.
The Cabinet also approved the 7th pay commission recommendations for grant of allowances to Government employees, members of armed forces and those posted in Siachen areas.
For the disinvestment of the Air India, the Cabinet decided to set up a committed headed by Finance Minister and Civil Aviation Minister. The body will also have several other Union Ministers as its members and decide on the modalities of the biggest disinvestment decision taken by the Modi Government.
Detailing the Cabinet decisions, Finance Minister Arun Jaitley said a group will be set up to finalise modalities/ details of disinvestment of Air India, including the quantum of stake sale.
The Civil Aviation Ministry is charting out the disinvestment of the state-run carrier, said Jaitley without detailing much in this regard to a volley of questions on the disinvestment decision.
“Constitution of an Air India-specific Alternative Mechanism headed by Minister of Finance, including Minister for Civil Aviation and such other Minister(s), to guide the process on strategic disinvestment from time to time and decide the following: a. Treatment of unsustainable debt of Air India; b. Hiving off of certain assets to a shell company; c. Demerger and strategic disinvestment of three profit-making subsidiaries; d. The quantum of disinvestment; and e. The universe of bidders,” said the statement issued by the Government.
The Government decision to implement the pending recommendation of the seventh pay commission will lead to quantum jump in House Rent Allowances (HRA) of the Government employees. Children’s education allowances as well as allowances to forces and paramilitary staff have also been hiked up.
The 7th CPC had placed Siachen Allowance in two slabs of Rs 21,000 and Rs 31,500. Recognising the extreme nature of risk and hardship faced by officers and others on continuous basis in Siachen, the Government decided to further enhance the rates of Siachen Allowance from the existing Rs 14,000 to Rs 30,000 per month for jawans and JCOs (level 8 and below) and from Rs 21,000 to Rs 42,500 per month for Officers (level 9 and above). “With this enhancement, Siachen Allowance will become more than twice the existing rates. It will benefit all the soldiers and officers of Indian Army who are posted in Siachen,” said the Government statement.
The Cabinet also sanctioned Rs 3,691 crore highway project in Uttar Pradesh that is part of the Golden Quadrilateral between Delhi and Kolkata. Cabinet “has given its approval for development of six laning of Chakeri-Allahabad section of National Highway (NH)-2 in Uttar Pradesh,” Ministry of Road Transport and Highways said in a statement.
The cost of the project is estimated to be at Rs 3,691.09 crore, including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road to be developed is approximately 145 kms.