By Nirbhay Kumar
New Delhi, Aug 23 (UNI) The government is ready to make up for the shortfall on account of liquidation value of the investments in the existing Provident Fund (PF) Trusts of disinvestment-bound Air India.
The airline has decided to shift its employees' PF accounts to Employees' Provident Fund Organization (EPFO) before its ownership is transferred.
The transfer would require pre-mature liquidation of securities held by the Trusts and may result in shortfall or surplus in the corpus depending on market conditions.
Air India Specific Alternative Mechanism (AISAM) headed by Home Minister Amit Shah earlier this month approved voluntary transfer of PF, presently operated through two separate trusts, to EPFO before disinvestment for provident fund benefits of employees.
"The investment in the existing PF Trusts would have to be liquidated prior to transfer to EPFO and it would be ensured that best possible realizable value investments would be achieved," the AISAM decided.
"It was also decided that in case of shortfall in liquidation value of the investments of the existing PF trusts, it would be made good by AI/Government of India, if need be through budgetary support," quoted a Ministry of Civil Aviation letter seen by UNI.
The Civil Aviation Ministry has asked Air India to get the modalities of the transfer of PF Trusts of Air India to EPFO including consent of more than 50% employees in consultation with EPFO/Labour Ministry.
The Ministry has also directed the airline to complete the transfer of both the PF Trusts at the earliest.
"Air India is also requested to provide the reasons for any shortfall in the liquidation values of the investments vis-a-vis the liabilities in the two PF trusts on priority," the Ministry has written to the airline.
UNI NK SHK1630