NEW DELHI: Prime Minister Narendra modi said Wednesday that the planned privatization of state-owned companies Business will help free up resources to spend on wellness, developing, empowering citizens and creating jobs as it set a goal of monetizing 100 government-owned assets in all sectors worth Rs 2.5 lakh crore.
Reiterating his strong support for privatization and asset monetization, the prime minister said that the reforms, which have been launched, were aimed at ensuring that public money is spent judiciously to benefit the poor, in what was seen as a response to critics of the new policy presented. in the budget.
“The money that belongs to the poor is used for these types of companies (UPM). This places a huge burden on the economy, ”Modi said in a webinar to develop the roadmap for the implementation of the budget proposals on privatization and monetization of assets.
He said government You don’t have to keep running public sector companies just because they’ve been running for decades or because they were “someone’s favorite projects.”
Modi’s speech at the Budget implementation webinar was based on his strong push for privatization and private enterprise in Parliament earlier this month. It also marked the tightening of what appeared to be an opportunistic impulse justified by the pandemic in strong belief, and Modi stressed that the government has nothing to do to be in business. Rather, he went a step further and advocated for the elimination of the role of government in the lives of citizens, restricted only to those spheres where it was essential. “The absence of the government should not be felt in areas where it is needed, but its influence should not be felt in other spheres.”
The prime minister sought to strengthen private sector momentum by linking the twin drives of privatization and monetization with the need to meet basic needs, from schools and roads to clean water for the poor.
Since coming to power in 2014, the NDA The government has talked about the sale of power supply units, especially those that generate losses, such as Air indiabut it has a poor track record. It sought to pass the sale of state entities, such as HPCL to ONGC, another PSU, as a strategic sale, which generated criticism even from the CAG.
He is now trying to push it forward as a key reform initiative and has even added state banks and a general insurance company to the list, after specifying that only four strategic sectors: atomic energy, space and defense, transport and telecommunications, energy and oil. – will have power supplies. Even in sectors, state-owned companies may have a small presence.
“This policy will go beyond the annual divestment targets by preparing a strategic medium-term approach and will also help select individual companies. There will also be a clear roadmap for investment, ”Modi said, while clearly delineating the role of state entities.
“It is the government’s responsibility to support and encourage businesses and companies, but it is not necessary for the government to run or own businesses. That’s why I say that the government doesn’t have to be in business, ”Modi told the webinar attended by the finance minister. Nirmala Sitharaman, investors, private sector executives and government officials. “It is more important for the government to focus on welfare and development projects,” the prime minister said, detailing the shortcomings of the government’s direct involvement in business management.
“It is our government’s effort to improve people’s living standards while reducing unnecessary government inference in their lives,” he said, emphasizing that there should be neither too little nor too much government interference.
Referring to the National Asset Monetization portfolio, the prime minister said there were several underutilized and unused assets in the country. ”We have a target of 100 oil, gas, airport, energy assets, which we plan to monetize. This has the potential for investment opportunities of Rs 2.5 trillion. I can tell you that this will continue in the future as well, ”said the prime minister.
“The mantra with which the government advances is to monetize and modernize. When the government monetizes, that space is occupied by the private sector, ”Modi said, adding that the private sector brings investment, global best practices, which modernizes and expands the sector and opens up job opportunities. But he also said that to ensure that this procedure is transparent and within the rules, monitoring is necessary.
“Therefore, through ‘monetize and modernize,’ we can usher in greater efficiency across the economy. Any money that comes from government efforts can be used for social assistance programs, ”Modi said, stating that the funds raised from the monetization and privatization of assets are used to build housing for the poor, rural roads, schools and many other projects. of social assistance. He said that privatization will also open opportunities for young people, who will be able to show their talents.
He said PSU’s assets have served the nation well and there are also immense possibilities ahead. “We have seen that every time management changes, companies reach new heights. You must assess value not on the basis of the present but on the immense hidden possibilities of the future, ”Modi said, urging investors to take advantage of the new policies.
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