The Union Cabinet yesterday decided to lower the retirement age of Air-India (A-I) employees from 60 to 58 years, as part of its efforts to cut the losses of the airline.
The decision will result in net savings of Rs 68.81 crore, a government spokesperson said.
The move is a reversal of the BJP-led government's decision in May 1998, when it raised the retirement age of all state-owned companies including A-I from 58 years to 60.
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The spokesperson said the decision to reverse that May 1998 order would be applicable only to A-I.
The Cabinet also accorded approval for accession to the protocol of 1992 to amend the International Convention on Civil Liability for Oil Pollution Damage, 1969.
To amend part XB of the Merchant Shipping Act, 1958, suitably to enhance the limit of compensation and scope of the claim, and to make such other amendments consequential to conform to the 1992 protocol, a government release said.
The release said accession to the 1992 protocol would be in the overall interest of India because of considerable oil movement passes in close proximity to the Indian coast which are exposed to pollution damage, and the convention would offer adequate compensation to parties in India for any pollution damage.
Further, Indian tankers have to trade with contracting states to the convention and consequently every such Indian tanker would have to provide insurance in compliance with the provisions of the convention as otherwise such tankers could otherwise denied entry into or clearance from the ports of other contracting states.
The Cabinet also granted expost facto approval in respect of the agreement and protocol for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income between the Indian government and the Kyrgyz Republic.
The agreement and protocol after it enters into force will stimulate the flow of capital, technology and personnel from India to the Kyrgyz Republic and vice versa. It will provide tax stability and reduce any obstacles for providing mutual cooperation.