New Delhi: In a repeat of what happened five years back when the Narendra Modi government had to surrender its reforms agenda, particularly its Land Acquisition bill, in the face of opposition from within the Sangh Parivar, the government on Sunday faced renewed resistance from Swadeshi Jagran Manch (SJM) on the issue of privatising public sector enterprises (PSEs).
The Modi government has proposed strategic sale in PSEs, including in profit-making Bharat Petroleum Corporation Limited (BPCL), to meet its disinvestment target, which would help shore up GST (goods and services tax) revenue shortfalls and manage the mounting fiscal deficit.
The SJM is an economic think tank affiliated to the Rashtriya Swayamsevak Sangh (RSS). In a resolution passed at its national assembly in Haridwar, the SJM said the Modi government’s proposed strategic disinvestment of PSEs was an “imprudent business decision” and “against national interest”.
The SJM said the disinvestment of Air India and BPCL was “uncalled for”. “There is a need for fair assessment of the PSEs — their potential, strategic need, turnaround probability, market utility — and then the disinvestment strategy is required,” it said.
“Close scrutiny of Air India’s financial and other documents reveals that the restructuring of Air India’s debts and assets can not only reduce the liabilities for the company but also spin the national carrier back into profits,” it said.
"A major chunk of the losses is because of the servicing of the debt. This debt is taken because of the bad decision making (with mala-fide intentions)... A developing country like, India needs the national carrier for strategic and market balancing requirements," it said. The SJM said Niti Ayog report is a handiwork of a "few consultants (who continue to work on game plan of vested interests)".
02/12/19 Archis Mohan/Business Standard
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The Modi government has proposed strategic sale in PSEs, including in profit-making Bharat Petroleum Corporation Limited (BPCL), to meet its disinvestment target, which would help shore up GST (goods and services tax) revenue shortfalls and manage the mounting fiscal deficit.
The SJM is an economic think tank affiliated to the Rashtriya Swayamsevak Sangh (RSS). In a resolution passed at its national assembly in Haridwar, the SJM said the Modi government’s proposed strategic disinvestment of PSEs was an “imprudent business decision” and “against national interest”.
The SJM said the disinvestment of Air India and BPCL was “uncalled for”. “There is a need for fair assessment of the PSEs — their potential, strategic need, turnaround probability, market utility — and then the disinvestment strategy is required,” it said.
“Close scrutiny of Air India’s financial and other documents reveals that the restructuring of Air India’s debts and assets can not only reduce the liabilities for the company but also spin the national carrier back into profits,” it said.
"A major chunk of the losses is because of the servicing of the debt. This debt is taken because of the bad decision making (with mala-fide intentions)... A developing country like, India needs the national carrier for strategic and market balancing requirements," it said. The SJM said Niti Ayog report is a handiwork of a "few consultants (who continue to work on game plan of vested interests)".
02/12/19 Archis Mohan/Business Standard
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