Treatment should be similar to Air India, says
chamber
New Delhi, Nov. 26:
The Government should provide a similar kind of financial help to
Kingfisher Airlines as extended to state-owned Air India, the Associated
Chambers of Commerce and Industry of India (Assocham) said on Monday.
Pointing out that Life Insurance Corporation of India and Employees
Provident Fund Organisation have both subscribed to the over Rs 7,000-crore
debt issue of Air India as part of the Government bailout package, the apex
chamber has called for similar treatment for the private-owned airline.
LIC has subscribed Rs 3,000 crore and EPFO Rs 4,400 crore of Air India’s
debt issue.
Kingfisher Airlines, which reported losses of over Rs 9,000 crore and
debt of over Rs 8,000 crore, ceased operations on October 1.
Nation’s resources
“Both private and the public sector companies operate in a similar
environment.
“As the largest shareholder, it becomes incumbent on the Government to
safeguard its PSUs.
“But at the same time, the banks and other financial institutions should
not discriminate against the private sector firms.
“To the extent additional equity from the main promoters, the UB group
is required, we would urge them to bring in these funds so that the lenders’
comfort level is increased,” the apex chamber said in a media statement.
Assocham has argued that whether it is public or private sector money,
the resources belong to the nation and should not be allowed to go down the
drain.
Satyam example
“Satyam Computer is a shining example how the Government can effectively
intervene and help revive an organisation irrespective of its ownership
pattern,” the apex chamber has said.
The closure of Kingfisher has also led to a sharp hike in the air fares
and untold misery for the airline employees who are finding it difficult to
find other jobs due to the overall situation in the industry, Assocham said.
http://www.thehindubusinessline.com/todays-paper/tp-economy/bail-out-kingfisher-like-air-india/article4137960.ece
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