PM Modi gives BIG statement on privatisation of PSUs
Prime Minister Narendra Modi strongly supported the privatization of non-strategic PSUs on Wednesday, saying that doing business is not the government's job.
New Delhi: Prime Minister Narendra Modi strongly supported the privatization of non-strategic PSUs on Wednesday, saying that doing business is not the government's job.
PM Modi said that his government is committed to privatizing government units in other areas except for some public sector undertakings in strategic areas. PM Modi said that running the deficit enterprises through taxpayers' money wastes resources. These resources can be used on public welfare schemes.
"We will raise Rs 2.5 lakh crore by selling idle government properties," PM Modi said.
PM Modi said in a webinar organized on public sector companies that under-utilized or unused assets of public sector undertakings will be monetized. These include oil and gas and power sector assets. Their monetization will generate investment opportunities of Rs 2.5 lakh crore.
"It is the duty of the government to support enterprises and companies. But it is not necessary that the government should own and run these companies," Prime Minister Narendra Modi said.
"The private sector brings investment, global best practices, best managers, management changes and modernization. He said that the money that would come from the sale of stakes in public sector undertakings would be used for public welfare schemes like water and sanitation, education and health," PM Modi added.
Prime Minister Narendra Modi said that to speed up the process of disinvestment, the Empowered Group of Secretaries will work to resolve the issues of investors. 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 in loss, many are being helped with taxpayers' money. This money can be used in welfare schemes.
"The government aims to raise Rs 1.75 lakh crore from its stake sale 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. In addition, the initial public offering (IPO) of Life Insurance Corporation (LIC) will also come. Also, two state-owned banks and one general insurance company will be sold," PM Modi said.