LIC, EPF funds misused?
While Air India will get an extended lifeline with the Life Insurance Corporation and Employees’ Provident Fund Organisation agreeing to invest `7,400 crores in its non-convertible debentures, it has raised concern among ordinary people who have invested their savings in LIC and EPFO. This `7,400-crore bailout is meant to rescue the heavily debt-laden Air India and not for any productive purpose. The government refuses to let Air India be run by a board of professional executives who can ensure it functions with good management practices.
For instance, Air India was made to vacate the lucrative Mumbai International Airport, where it had direct flights to Europe, London and New York, and will now fly only from Delhi. Why should people fly from Mumbai to Delhi to catch an Air India flight to Europe, London or New York, when there are other alternatives? How much revenue has Air India lost due to this? This leaves Mumbai free for other private carriers who are making a killing. Why was this done? It may be a bonanza for Delhi airport, but how does it help Air India?
If this is the way Air India’s growth is being stifled, and there is no one to look after its interests, it is worrying if people’s hard-earned savings invested in LIC and EPFO are used to fund what can only be a losing proposition.
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