The government has now declared in a prime choice that every one PSU in non-strategic sectors can be private with the aid of using Government withinside the strategic.
On Friday, valuable alternate unions staged a national rally towards what they name the government’s anti-worker, anti-farmer, anti-people, and anti-national policies, sending their memorandum to the labor minister during the day.
The 10 significant alternate unions that joined Friday’s countrywide protest covered Congress-sponsored INTUC, Left CITU and AITUC along with others that encompass AIUTUC, HMS, TUCC, SEWA, AICCTU, LPF, and UTUC less than a month since their prior protest.
In the memorandum, the CTUs reiterated their opposition to disinvestment, stating that the privatization of public sector firms, the opening up of sectors such as Indian railways, defense, port and dock, gas, Air India, banks, insurance and the privatization of space science and atomic energy are moves in favor of Indian & foreign brand corporations to usurp the country’s natural resources and businesses.
Government to privatize all of India’s PSUs save 4
PSUs or Public Sector Units in India are government-owned groups which can be both strategic and non-strategic sectors in focus.
Finance Minister Nirmala Sethuraman said that in the strategic field, except 4 PSUs, all would either be given to private firms or combined or bought under holding. This mega push to denationalize PSUs turned in for supporting the Atma Nirbhar Bharat Abhiyan stimulus package, which offers Rs 20 lakh crore stimulus, approximately 10% of India’s GDP.
In the current fiscal year, months before the corona virus pandemic occurred; the Government had already committed Rs 2.1 lakh crore disinvestment through privatization of PSUs, and Rs 1.2 lakh crore through privatization of CPSEs. As of October 2019, ten Maharatnas PSUs, fourteen Navratnas PSUs, and seventy-four Miniratnas PSUs have been built. In addition, there are almost 300 CPSEs (central public sector undertakings).
Impact of the privatization
The Finance Minister had unambiguously declared the intention to privatize PSEs and properties across industries, which would undermine the very foundations of our national economy, far from encouraging economic self-reliance which is the most common argument against the privatization.
- The CTU said that the Modi government has brought tremendous suffering to millions of workers, farmers, and other poor parts of society. Whereas, the government just stood by businesses and major firms.
- A statement released by the union said CONCOR is the only railway Navratna PSU and it is a performing organization to establish economic balancing by supporting pan-India-based export/import through its 83 terminals.
- Of these 43 are on railway land and the estimated cost of land is Rs 25,000 crores, it says.
- Nearly 10 lakh people are working directly and indirectly with CONCOR and the decision on disinvestment will impact 10 lakh families.
- If disinvestment is performed then this land will go into the hands of private players while by strategic disinvestment of 30.8 in step with a shareholding of the Government of India.
- The All India Bank Officers’ Confederation (AIBOC) said in a statement that the package includes very little in terms of fiscal stimulus and tries to inflate the package size by applying liquidity injection measures to that of fiscal acts.
- The problems of unorganized sector employees, especially migrant workers, non-payment of wages, tremendous job losses, suspension of labor laws and rising working hours in many states, and unbridled privatization by selling PSU ‘s defense corporation and railway production units made Bharatiya Mazdoor Sangh (BMS) observe Sarkar Jagao Saptah nationwide from 24-30 July on issues.
In several crisis situations, PSEs played a major role in building the nation and assisted the country unlike fair-weather friends and public-sector banks that were at the forefront of implementing various government schemes. It said while the “strategic sectors” where at least one PSU should be required had not yet been informed, it is clear that many of the 244 operating CPSUs were targeted for privatization. The experience of Air India’s attempted privatization has already shown that there is no shortage of even suitable buyers at the time. Given the recessionary trends, this will entail public spending and expenditure first, which is why a fiscal stimulus is an absolute necessity of the hour. Only a major surge in public investment and spending will ensure crowd-in financing through the private investment route along with direct cash transfers to migrant workers and other disadvantaged groups.