Govt proposes one-year retention for Air India staff after privatisation

Draft RFP sets a precedent for all state-owned firms on the block

In the draft request for proposal (RFP) shared with shortlisted bidders, the government has proposed retaining the existing Air India employees for one year after privatisation, setting a precedent for all public sector undertakings (PSU), including banks, on the block for selloff.

The government had shared the draft RFP and share-purchase agreement (SPA) with shortlisted bidders in April, and has received comments from them, said an official.

The draft RFP requires retaining existing employees for one year, which is a dilution of the government’s previous stance of negotiating employee retention for at least two years, and has been done after consultations with