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| Finance minister Jaitley |
AMID reports that Narendra Modi-led
NDA government will shut some of the sick PSUs that are no longer
sustainable, Finance Minister Arun Jaitley on Nocember 5 expressed
readiness to look at privatisation of some loss-making public sector
companies.
Asserting that the country needed to
doggedly pursue the reforms agenda despite challenges, he maintained
that reform is the art of possible but it cannot be just "one
sensational idea".
There could be hundred things which
could be done but the focus would be on what can be done immediately
as part of the reform process, he said kicking off the two-day India
Economic Summit here organised by Geneva-based World Economic Forum.
On privatisation and opening up more
sectors such as insurance to foreign investors, Jaitley said the last
time Bharatiya Janata Party-led NDA was in power, it followed a
liberal model.
On disinvestment, Jaitley said, "This
time, there will be divestment as some important public undertakings
are on the verge of closure. But on foreign investment, decisions
will be made sector-wise, keeping in mind the requirements of Indian
economy and the appetite of the political system for reform."
Earlier, a committee headed by NTPC
chairman Arup Roy Choudhury has supported the Government’s view on
revival of sick public sector undertakings with the help of cash-rich
PSUs.
The committee that submitted its report
to the ministry of heavy industries and public enterprises was tasked
to examine the feasibility of cash-rich Maharatnas, Navratnas and
other Central public sector enterprises (CPSEs) seeding a a joint
venture (JV) company that would revive sick PSUs.
According a rough estimate, profitable
PSUs have over Rs 2 lakh crore of cash lying with them, mainly in
banks which will go a long way to bring many a sick PSUs back on the
path of profit.
According to an answer given by the
heavy industries ministry in Parliament, there were 61 sick CPSEs as
on March 31, 2013, with over 1.53 lakh employees.
Once the company is revived, there will
be disinvestment and the proceeds will go to the JV, so that the
investee gets back its capital.
Currently, sick PSUs are referred to
the Board for Reconstruction of Public Sector Enterprises for
revival, restructuring, sale or closure. According to a Government
resolution, a company will be considered sick if it has accumulated
losses in any financial year equal to 50 per cent or more of its
average net worth during the four preceding years.
Recently, the ministry announced a plan
to close six PSUs: HMT Watches, HMT Bearings, HMT Chinar Watch,
Hindustan Photo Films, Hindustan Cables and Tungabhadra Steel.
Heavy industries and public enterprises
minister Anant Geete had earlier said: “The new company formed will
review and decide which sick PSUs can be revived. We want to give it
entire responsibility to take over (revival of sick PSUs). There will
be complete transparency in the process and the surplus money lying
idle will certainly be used to revive sick PSUs.”
Our FM says sick psu ecutives are inefficient,they have no talent how to turn around the sick psu.but the private players know how to make profit from sick psu.then why govt spend lakhs and lakhs salary for this inefficient executives and what is the use of this executives.but they know how to help private players.(MNC's).Our Pm also strongly believe this executives.why not handed over to this sick psu's to profit making psu's.why private.The reason no body knows,but we says MAKE IN INDIA.End of NDA govt period they will privatise all psu's,because of its LAND BANK.
ReplyDelete09-11-2014
ReplyDeleteTo the Editor,
Kindly note that some of the
public Sectors like HMT have not paid the Earned leave
Encashment Money to the retiring Employees under the
pretext that it would be paid when Funds are
available, but earned leave en-cashment money to
existing employees is being Paid without a stop every
year. Why is Pay revision that of 1997 scale ( not
2010) , implemented only to the existing employees
on rolls as on 28th February 2014 and the retirees are
not even being considered Why? are the retired
employees not a party of the society. People retired
about 5-6 years back have not received
El.encashment also till date. Is the Social security act not
applicable to the retired employees?
Where is social security, Kindly also bear in mind
that the prices of commodities and medical expenses is
not different to employees and retired employees of
loss making PSU's. The Industrial Pension is also very
meager and does not have any DA component added to
take care of inflation. I feel that Depriving the
benefits of pay commission recommendation to loss
making Psu employees is not Justified, also depriving
the retired employees whenever the pay revision is
implemented is not correct. It looks that the
Government is Punishing the employees/Retirees for no
mistake of theirs. Kindly note that Retired employees
Come under the Senior Citizen category.
When will the government give social security to
these retirees who are helpless.
These people cannot fight a legal battle also as they
cannot afford.
Letters to the General Manager/Managing
Director/Joint General Manager( Finance) have given no
results.
Hope this letter to you may open the eyes of the
Government and this new Government may do some
Justice.
M.R.Vishwanath
Retd.Dy.General Manager
( Retired in 2010)
HMT. Machiine Tools Ltd,
Bangalore
Mobile -91 09480219756
Yes, all PSU irrespective of its economic health should be privatise without any further delay. Presently crores of rupees of hard earn taxpayers have been invested in these PSU and the so called executives are making money through currupt way. Everywhere the decision is putting off giving reason of some nonsense procedure and policy and whenever their interest are fulfilled they find some way of proceeding the matter further. This is the reason of failure of PSU. There are hundreds of PSU enjoying with govt provided land, infrastructure, benefits and even though got sick, not providing jobs to our youth eagerly looking towards the govt for job. If the PSUs (specially sick) are sold out, they can be restarted with new investment by private players. Therefore I strongly advocate to go for privatisation of PSUs.
ReplyDeleteVirendra Singh,
Ultratech Cement