The Union cabinet approved the disinvestment proposal of Air India. Finance Minister Arun Jaitely has said that the government will constitute a committee to finalise the modalities to privatise India’s national air lines. The cabinet has also approved the recommendations of the Seventh Pay Commission
The HRA that has been approved will be 24%, 16% and 8% of the new basic pay, depending on the type of city.
“The HRA will not be less than Rs 5,400, Rs 3,600 and Rs 1,800 depending on the type of city and calculated at 30%, 20% and 10% of minimum pay Rs 18,000,” a government statement said.
The HRA revision will benefit more than 7.5 lakh employees. HRA constitutes 60% of the total allowance of a government employee’s pay.
The Union Cabinet on Wednesday gave an in-principle approval for disinvestment of Air India.
Finance Minister Arun Jaitley, while addressing a press conference, said that on the request of the Civil Aviation Ministry a group under his vigil will be constituted to decide on the modalities of the matter.
"There was a proposal of civil aviation ministry of disinvestment of Air India, this has been given theoretical approval or an in-principal approval," said Jaitley.
"In its proposal the civil aviation ministry had urged to constitute a group under the finance minister which can decide on the concerning modalities of the same, the cabinet has accepted that. How much of it will be disinvested? Or the issues related to its debts, hotels will be later on decided by the constituted group," he added.
This step comes in the view of Ministry of civil aviation plying ways to revive Air India, which is surviving on Rs 30,000 crore bailout package extended by the previous UPA regime.
Air India constitutes of the largest fleet of 140 planes in India.
According to reports, the cabinet chose between two options suggested in a 30-page note prepared by the Department of Investment and Public Asset Management (DIPAM) after discussions in a Committee of Secretaries, headed by the cabinet secretary