Sitharaman junks report of privatization dropped from govt agenda

Spread the love

Sitharaman says Cabinet will decide on privatization

By Our Special Correspondent

New Delhi, July 23: Finance Minister Nirmala Sitharaman has rejected the claims that disinvestment and privatization are no more on the agenda of the government. Sitharaman said that “it’s for the Cabinet to take a call on privatization”.

In a post-Budget news conference, Sitharaman said: “The Cabinet takes a decision on privatization or disinvestment. Whenever the Cabinet thinks appropriate, it will take a decision on privatization.”

Reuters had reported in the run up to the Budget that the government has dropped privatization and disinvestment from its agenda. The report had also claimed that the government would rather infuse more capital in the public sector units to make them competitive and viable.

Also Read: Nirmala Sitharaman unveils coalition dharma Budget

“We had done privatization after the Covid. Air India was privatized. Some steel plant in Odisha was privatized,” said Sitharaman.

The minister was responding to a question during the presser if the government has dropped privatization from its agenda. Sitharaman also didn’t mention disinvestment in her budget speech.

“The Cabinet decides on privatization. It’s for the Cabinet to decide on the timing. Whenever it finds appropriate, it will take a decision and that will be honoured,” said Sitharaman.

The minister, however, said that the government expects healthy proceeds from dividend payouts from the public sector units (PSU). The PSU stocks are commanding record high prices in the stock market.

Also Read: Economic Survey tells half-story for ‘India Shining’

However, the government headed by Prime Minister Narendra Modi has gone cold on privatization. After the selloff of Air India, there has been no major move to push the privatization agenda.

The Niti Aayog had submitted a long list of PSUs, which included those who are sick and otherwise, for privatization. But there has been no progress on taking the agenda further.

The government had earlier listed a number of PSUs for privatization. Bharat Petroleum, Container Corporation of India, Shipping Corporation of India, Balmer and Lawrie were among a host of PSUs on the selloff list.

Also Read: Nepal PM Oli dials diplomacy on border dispute with India

Industry experts note that the PSU valuations have leapt beyond the imagination of the government. The valuation of the PSUs, which were on the list for privatization, has doubled and even tripled in some cases.

They argue that the privatization of such PSUs may be daunting now because any discounted sell will invite the accusations of the Opposition parties of favouritism.

Join the WhatsApp channel of The Raisina Hills