Cost cutting is on in country’s Energy sector. Interestingly, it is being down without interfering in the purchase decision of PSUs by the Energy PSU Task Force.
Keen to cut down on costs, the ministries of Coal, Power, New and Renewable Energy, Petroleum and Natural Gas are charting out strategies wherein they can bring down the expenditure.
To begin with they have successfully negotiated with airlines for cheaper air fare for members of Central Public Sector Enterprises .
As a pilot project, air travel spending has been taken up initially. After deliberations with all major airlines a deal was stuck and a Memorandum of Understanding was signed by EPTF on Wednesday, Sep 27. It was decided that based on volumes, airlines will offer discounts on the market price of air tickets up to 22% in various categories.
“The estimated expenditure incurred on air travel by members of CPSEs (143 institutions, including 30 CPSEs) during 2014-15 was to the tune of Rs 270 crore.
Based on the volume, airlines have offered discounts on the market price of air tickets up to 22 per cent in various categories. It is anticipated that the savings could be in the range of 8-10 per cent on air travel spend,” said Rakesh Kumar, Director (Finance), NLC India.