ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Privatisation and the Voluntary Retirement Scheme

The voluntary retirement scheme of public sector enterprises is built on the narrative of overstaffing and inefficiency. With Bharat Sanchar Nigam Limited being the latest to announce a massive VRS, this article examines the path that led to this package. It argues that it is one of the instruments through which labour flexibility is ushered in public sector enterprises, which often end in privatisation. It also discusses the crucial role that BSNL could take up by virtually connecting the physically distanced in the resistance against the ongoing pandemic.

Is Disinvestment of Air India Appropriate?

An analysis of Air India’s financials reveals that the national carrier is on the path to profitability. Strategic disinvestment at this time will prove to be suboptimal. It is shown that debt obligations of the carrier can be serviced, given its improving performance. The airline’s revenues also entail large amounts of foreign exchange inflows. With global crude oil prices expected to remain subdued, strategic disinvestment of Air India at this juncture is not desirable.
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