Cabinet clears Air India disinvestment, 7th pay panel recommendations

New Delhi, June 28

The Union Cabinet on Wednesday cleared disinvestment of debt-laden Air India but the final modalities, including the quantum of stake sale, will be decided by a group of ministers.

It also approved 7th Pay Commission recommendations on allowances of government employees with modifications.

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A group will be set up to finalise modalities/details of disinvestment of Air India, including the quantum of stake sale, he said.

The civil aviation ministry is charting out the disinvestment of the state-run carrier.

Surviving on taxpayers' money, Air India has been in the red for long and various proposals, including government think tank Niti Aayog's suggestion for complete privatisation, have been made.

Read: Waive Air India's debt, instead of selling it: Workers' union

The airline has a debt of more than Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012. 

The Cabinet approved recommendations of 7th Central Pay Commission on allowances with 34 modifications. The revised rates will be effective from July 1, 2017. It will benefit 34 lakh civilian employees and 14 lakh Defence forces personnel.

The CPC examined 197 allowances, recommending abolition of 53 allowances and subsuming 37 in others.

It recommended revised rates commensurate with Dearness Allowance. The CPC has projected additional financial implication at Rs 29,300 crore per annum. Modifications will have additional implication of Rs 1,448.23 crore.

Combined additional financial implication estimated at Rs 30,748.23 crore per annum. — Agencies