Prime Minister Narendra Modi on Wednesday said the government has no business to be in business and his administration is committed to privatising all PSUs barring the bare minimum in four strategic sectors.
“It is government’s duty to support enterprises and businesses. But it is not essential that it should own and run enterprises,” he said.
Modi also said the Centre’s policy is to either monetise or modernise public sector enterprises, with the intent that the government has “no business to be in business”.
Speaking at a webinar on privatisation by the Department of Investment and Public Asset Management (DIPAM), Modi said the Budget has given a clear roadmap to take India to a high growth trajectory.
He said his regime has set a target to monetise 100 PSUs in oil, gas, airports, ports, power, among other areas, which will draw Rs 2.5 trillion of investment.
“This process will continue in the future as well,” he said at a webinar on privatisation and investments in the Budget for 2021-22.
The PM underscored the need for adopting the best global practices for determining price discovery of these assets and mapping stakeholders.
“The implementation of these policies are equally important. Stable policies and the right processes are required to ensure transparency and competition,” he added.
Fiscal support to sick PSUs puts burden on the economy and public sector units should not be run just because of legacy, the Prime Minister said, adding many PSUs are loss-making and supported by taxpayers’ money.
Modi reiterated that the government has a Rs 111-trillion national infrastructure pipeline for the next five years, of which around Rs 25 trillion may come from the private sector.
He said the Budget has addressed the tax issues in infrastructure raised by investors. “The Budget has laid a road map for taking India to a high growth trajectory.”