Selling the Family Silver?

The centre’s strong pitch for privatisation is an attempt to give a fillip to the economy. While many PSUs are loss-making, unless there is a clear plan and fast implementation, it could be another failed venture

- Shivanand Pandit

THE government has made a strong pitch for privatisation of PSUs and monetisation of underemployed resources. At a recent webinar, Prime Minister Narendra Modi emphasised that a Rs 25-trillion opportunity is available for the private sector in the nation’s jumbo Rs 111-lakh crore National Infrastructure Pipeline projects over the next five years.

The webinar, organised by the Department of Investment Promotion and Asset Management (DIPAM), was attended by Finance Minister Nirmala Sitharaman, Vice-chairman of NITI Aayog Rajiv Kumar and senior officers from 14 ministries. Policymakers from independent wealth and pension funds, national and international investors, investment bankers, consultants and specialists also joined in. The main agenda of the webinar was to design an effectual execution plan for privatisation and asset monetisation as stated in Budget 2021.

Modi said the government had spotted 100 assets for monetisation that could raise as much as Rs 2.5-lakh crore for the exchequer. While making a pitch for the private sector to help in the development of the economy, he said that wealth creators are also significant for the nation. He declared that the government was marching forward with the chant of “monetise and modernise”, while emphasising that the government had no business being in business. He said the sum accumulated from monetisation and divestment would be expended to finance development plans in water, sanitation, education and healthcare sectors.