Prime Minister Narendra Modi on Wednesday strongly supported the privatization of non-strategic public sector undertakings, saying that doing business is not the government's job. He said that his government is committed to the privatization of government units in areas other than some public sector undertakings in strategic areas. Modi said that running wasteful enterprises through taxpayers' money makes resources useless, these resources can be used on public welfare schemes. PM Modi said that we will raise Rs 2.5 lakh crore by selling unsold government assets.
In a webinar organized on public sector companies, PM Modi said that under-utilized or unused assets of public sector undertakings would be demonetized. These include oil and gas and power sector assets. Their monetization will generate investment opportunities of Rs 2.5 lakh crore. The Prime Minister said the government must support enterprises and companies. But it is not necessary that the government owns and runs these companies.
PM Modi said that the private sector brings investment, global best practices, best managers, change in management, and modernization. He said that the money that would come from the sale of a stake in PSUs would be used for public welfare schemes like water and sanitation, education, and health. The Prime Minister said that the government has four strategic areas ... nuclear power, space and defense, transport and telecommunications; Electricity, petroleum, coal, and other minerals; Committed to the privatization of PSUs in all sectors except banking, insurance, and financial services. He said that the government's presence in them would be kept at a minimum level. He said that doing business is not the government's job, the government should focus on public welfare. He said that our goal is modernization and demonetization.
The Prime Minister said that the Empowered Group of Secretary will work to resolve investor issues to speed up the process of disinvestment. He said that the government has to focus on development and whenever PSUs do business there is a loss. He said that many public sector undertakings are at loss, many are being helped with taxpayer money. This money can be used in welfare schemes.
The government aims to raise Rs 1.75 lakh crore from the sale of its stake in public sector companies in the next financial year. These companies include BPCL, Air India, Shipping Corporation of India, Pawan Hans, IDI Bank, and Container Corporation of India. Apart from this, the initial public offering (IPO) of Life Insurance Corporation of India (LIC) will also come. Also, two state-owned banks and a general insurance company will be sold.
The Prime Minister said that the present reforms aim to ensure that public funds are used efficiently. He said that public enterprises are valuable assets of the country and there is great potential for them in the future. He said that fair price discovery would be adopted as a best global practice for privatization campaigns. PM Modi said, “Implementation is also important. Our procedures must be correct to ensure transparency and competitiveness. He said there should be a clear framework to ensure value discovery and mapping of stakeholders. He said that "Government companies should not be run simply because they are inherited". The Prime Minister said that the financial burden on sick PSUs puts a burden on the economy.
PM Modi said that in Budget 2021-22, there is a clear roadmap to take India on the path of high development. Financial support to sick PSUs puts a burden on the economy, government companies should not be run simply because they are inherited. Modi said that his government is working on a pipeline (list) of new national infrastructure projects worth Rs 111 lakh crore.
He said that the government has many such assets which have not been fully utilized or are lying idle, 100 such properties in the market will be raised to Rs 100 lakhs. Presenting India as an investment destination, the Prime Minister said that India is now a market, a country with a tax system, the tax system has been simplified, compliance complications have been improved.