Prime Minister Narendra Modi on Wednesday made a strong pitch for the privatisation of public sector units, saying that the government has "no business to be in business". Speaking on various reforms announced in this year's Union Budget, the Prime Minister also said that the Centre is going ahead with the mantra of "Monetise and Modernise".
When the government monetises, that space is filled by private sector of the country bringing investment and best global practices with them, he said. Batting for privatisation, the Prime Minister said that many PSUs (public sector units) are loss-making and are supported by taxpayers' money. Fiscal support to sick PSUs burden the economy and it shouldn't be run just because of legacy, he stated.
Speaking at a webinar on privatisation by the Department of Investment and Public Asset Management (DIPAM), Modi said that the private sector brings efficiencies and creates jobs.
He further said that the money garnered from privatisation and asset monetisation will be put to public use. "The government has many underutilised assets and those would be monetised to garner Rs 2.5 lakh crore," he said. He assured that the government is committed to privatisation of PSUs in all sectors barring four strategic sectors.
His emphasis on the privatisation policy also gains significance as the renewed push for disinvestment and asset monetisation has received criticism from the opposition who have termed the move as "selling the family silver"
The Prime Minister's address comes at a time when the government has re-strategised its disinvestment and asset monetisation policies with clear focus on privatisation.
Modi said that the budget for FY22 has outlined a clear roadmap for India to move on the "high growth trajectory". His emphasis on the privatisation policy also gains significance as the renewed push for disinvestment and asset monetisation has received criticism from the opposition who have termed the move as "selling the family silver".