Disinvestment in Five Govt. Agencies

by - December 03, 2019

Nirmala Sitharaman, Finance Minister 
         Five government agencies will be handed over to the private sector. The Narendra Modi Government made such a decision at a central cabinet meeting on Wednesday (20.11.19). It was decided to sell shares of three large companies like Bharat Petroleum (BPCL), Container Corporation (Concor), Shipping Corporation. Even at Wednesday's NDA Government's meeting, the decision was made to transfer 74.23 percent shares of Tehri Hydropower Development Corporation (THDCL) and 100 percent shares of Neepco (North Eastern Electric Power Corporation) to NTPC and handed-over the control powers. Union Finance Minister Nirmala Sitharaman said after the meeting that the Committee on Financial Affairs of the Union Cabinet decided on the merger of state-owned companies, that the participation of the government in several state-owned companies would be reduced to below 51 percent. It is to be noted that in the budget this year, the Finance Minister aimed to raise of Rs.1.05 trillion. The Finance Ministry has decided to sell shares of five companies for the same purpose in March 2020, just the imagination of experts.
Shipping Corporation
 The Government will sell 53.29 percent stake in Bharat Petroleum (BPCL), 63.75 percent for shipping corporation, and 30.8 percent for Conor. However, in order to maintain its importance in the railway sector, not all public shares of Conor will be given in private hands. But government control will be lifted. Meanwhile, the privatization of BPCL, however, will not result in the privatization of the Assam Nomaligarh refinery in the hands of Bharat Petroleum. Finance Minister Nirmala Sitharaman said the government or any other oil company would buy it.
      The Center had taken a target of a direct income of Rs 13.35 billion in the current financial year. But so far, there have been only 6 billion in this sector. That is, less than 50 percent of the target's money has been deposited in the central exchequer in the first seven months of the current financial year, according to Central Direct Taxes Board (CBDT) said PC Modi. 
     The government has set a target of collecting a record amount of money this fiscal year by selling shares of state-owned companies. This year, it has been decided to raise Rs.1,000,000,000,000 (1 trillion) to sell only government-owned shares. The government has set a target of reducing the budget deficit to 3.3 percent of GDP this year. But due to the recession, the revenue collection is low and there is a strong doubt about how successful the government will be in meeting that target. 
Industrial growth rate of India
            Besides, the production of industrial production is also volatile. Industrial production growth slowed to 4.3 percent last September. This is the first industrial sector in the country after April 2012. Not only that, the industry has been pushing upward for two consecutive months. In August, the index of industrial production declined by 1.1 percent. In September last year, the factory grew at a rate of 4.6 percent. As a result, the Modi Government is in a deep crisis of the country's financial condition.
Against this Disinvolvement Policy
When the Modi government's minister Piyush Goyal was struggling to negotiate free trade agreements among the 16 ASEAN countries, including the ASEAN groups, the RSS had a strong objection to the domestic awakening stage. The RSS claimed that Modi had to back off under their pressure. Before Narendra Mishra's resignation as Principal Secretary to the Prime Minister after the budget, they were against him. At this time, the Policy Commission has already selected 28 state-owned enterprises for the merger. That decision has already raised questions. 
    Several opposition parties, including the Left, have moved to protest the Modi government's policy of isolation. Congress is also opposed to Modi's decision to weaken government agencies and save profitable companies. Even today, a meeting was held in Ramlila, Delhi, to protest the Modi government's decision to dissolve the Modi government led by BJP leader Udit Raj. Rahul Gandhi endorsed the meeting. In this situation, the organization of the organization has raised the tune in opposition to the dissolution of the government today. After accepting the proposal at the Haridwar meeting, Ashwini Mahajan, the leader of the organization said, "The dissolution of state-owned companies is not only a stubborn business decision but also against the interests of the country. This is not just a denial of the rights of the people of India, but also of giving its customers a dishonest opportunity. ”Not just complaining, the organization has said today what alternative measures should be taken by the government.
BPCL Workers' Strike
       According to the Domestic Awakening Forum, India is the second-largest state-owned oil company, Bharat Petroleum (BPCL). The Blue Chip Company is responding professionally to the world market. If the government wants to reduce its stake in this company, it should be assigned to the stock market. According to one of the stage leaders, "It is heard that Saudi Aramco is monitored by this organization. This is dangerous! "According to them, even in the case of the state-owned airline Air India, the separation is not a solution. Reorganization and professional management of the organization can save him. Stage talk, the majority of Air India's losses are due. It was decided to pay these debts for dishonest purposes. The stage also thinks the company will see a profit when it is restructured properly.

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