The government has “no business” to be in business, Prime Minister Narendra Modi said on Wednesday to show his government push for disinvestment and privatization of public sector undertakings (PSUs).
The PM made the remarks during a webinar on privatisation by the Department of Investment and Public Asset Management (DIPAM).
“It is the government’s duty to support enterprises and businesses.
But it is not essential that it should own and run enterprises,” PM Modi said.
He went on to add, “There was a different time when public sector enterprises were established and the needs were also different.”
Speaking on the Budget 2021-22, the Prime Minister said Centre’s fiscal plan has given a clear roadmap to take India to a high growth trajectory.
“There is always scope to reform the policy which was good 50-60 years ago.
Now when we are bringing reform, our aim is to optimally utilise public money,” he added.
PM Modi went on to say, “We cannot continue with public entities just because they have been operational for so long.
The government’s focus should be on the welfare of society and policies related to people. It sounds like misusing the talent of our officers to keep them in the business operation of public entities.”
Mapping the Centre’s plan to privatise all PSUs, with the exception of four strategic sectors, the Prime Minister said his government has decided to monetize 100 such entities valued at Rs 2.5 lakh crore.
“Our focus is to monetize and then modernize. The private sector brings modern technology, a change in the management mindset and creates more efficient jobs. T
his can increase in efficiency of the system,” PM Narendra Modi said during the webinar.
He goes on to add that the money coming from this monetization will be utilized to enhance rural connectivity, supply safe drinking water and make provisions for cheap housing.
Prime Minister Modi however did not elaborate how his government so far enhanced rural connectivity by using the revenue generated from tax on Fuels which has grossed 24 Lakhs Crores Rupees over a period of 6 years in his regime
At preset India fuel prices are touching 100 Rs for petrol and every Indian average pays 60 Rs / litre as tax .