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- เผยแพร่เมื่อ 27 ก.ค. 2024
- The government will reinitiate the process of divesting its stake in national carrier Air India, even as it increased its disinvestment target in the Union Budget 2019-20 presented by Finance Minister Nirmala Sitharaman on Friday. The target for disinvestment receipts has increased to Rs 1.05 trillion for FY20, from Rs 90,000 crore in the interim Budget presented in February. Significantly, the finance minister said that the government’s stake in non-financial public sector units can go below the majority stake of 51 per cent. Instead of holding a direct stake of 51 per cent in PSUs, “government-controlled institutions” can chip in the remaining sum which the government will look to divest. This move will enable the government to retain control over such firms. The Finance Minister reiterated that the government will make sure that its control is not diluted after lowering its stake in public sector undertakings (PSUs) to below 51 per cent. The government will also continue with the strategic divestment of select Central Public Sector Enterprises (CPSEs). On this edition of the big picture we analyse the government’s disinvestment target.
Guests - R. Gopalan, Former Secretary, Financial Services, Ministry of Finance,
Dr. P. Pullarao, Economist,
Sushil Chandra Tripathi, Former Principal Secretary, Uttar Pradesh,
Anchor - Frank Rausan Pereira
Disinvestment for Development
Key Highlights:-
- Government has reintiated for disinvestment in AirIndia. Receipts of disinvestment arose from ₹1.05 trillion for FY2019-20 from ₹90,000 crores.
- Government will make sure that its step is not diluted in Puvlic Sector Undertaking.
- Previously government has adopted many strategies also.
- They were able to sell good and bad shares of the company.
- 51% stake of government need be direct, it can also be of other PSU's such as SBI, LIC etc.
Why does government has controlling stake?
- These institutions deals with larger public consumption. This 51% is physiological and for other reasons is necessary.
- "Government need to make the haste slowly."
- Different public entities can merge together with the government for 51% stake.
- Strategic disinvestment is the best way forward.
- Competitive concerns : When the government implement such policies through institutions cost ahould be brone by the government.
- Segregation between the functions of PSU and their peers is vital.
India's experience on past disinvestment
- It has been a mixed experience. BALCO which was first disinvested in 2002-03 had to undergo many issues.
- With these steps it brings flexibility in working. CAG auditing is not required and many other instances.
- There are around 250 or more government companies out of which more than 50 companies have been drained. These institutions are not able to expand properly nor they are able to provide employment.
- Government has many regulators to look that economic power doesn't takes place.
- Private investment is encouraged with the growing world economy.
What to do next for AirIndia disinvestment?
- Huge buyers are ready to buy stake in AirIndia.
- Government should play different role for that public entities which will have it's impact on the rest of the industry.
- Regulatory bodies are becoming victims of Regulatory captures.
- AirIndia has total of 18% stake in aviation sector and more than 10 lakhs passengers travel on daily basis so the all steps taken should be taken in slower pace.
- In the past AirIndia has always created disturbance for the government. Huge staff strength and unnecessary resources are failure.
- In 1990's AirIndia grounded most of its Air buses and in 2004-05 unnecessary aircrafts were purchased.
- Unlike the Singapore Airlines which very much effecticently managed if the government can turn the AirIndia in profitable manner then it is feasible for the government.
- It is very easy to dispose of the stake of AirIndia.
- This will open the market for FDI's in the aviation sector.
Way Forward :-
• Recently around 15 crore bank account were opened in Jhan Dhan Yojana which was not at all possible without the Private investment.
• There should be balance in the market with government having the executive regulatory power.
• There are many companies whose asset are reached the benchmark of trillion and they now do not require any government stake. Private investment would be better for them to boost up in the market.
• On the other hand many PSU's do not serve any purpose in market and can be easily disinvested.
• Asset needs to be managed efficiently and conscious look has to be given by the government in such steps.
Do you write up such for newspaper editorial also
Thank you man
*psychological reasons
The 15 crore bank account point was made to explain the need for Govt in Banks.
If the government did not have PSBs in the Banking sector, it is hard to imagine the private banks opening 15 crore bank accounts. Thus government cannot follow a general divestment policy and has to be sector specific and even case-by-case basis specific.
I hope this guy is civils aspirant
- Disinvestment target has increased to Rs 1.05 trillion for FY20 from Rs 90,000 Cr.
- Government's stake
in non-financial public sector units can go below the majority stake of 51 per cent.
- Govt. controlled institutions can chip in the remaining sum which the government is planning to divest.
- Strategic divestment of select Central Public Sector Enterprises.
Importance of PSU's
- Public Service : Railways - Right balance of time vs economy for majority of people.
- National Security - Defense Companies.
- To restrict the economic concentration of power.
- Where private companies won't be interested - tribal area.
- To prevent private monopoly.
Issues with PSU's
- Low Efficiency & Overstaffed.
- Loss making companies in huge number - Air India, BSNL.
- Competitiveness.
- Resource draining - Railways have excess land which can be used for tourism or BSNL has fibre optic networks which can be used as resource sharing for 5G.
Disinvestment:
- Govt plan to have stake in PSU's
Bhai aap upsc cse do
Pakka nikaal loge
@@AbhishekVerma-uo1oi tumko kya lagta hai.. ye free hain
Good work
Thank you so much 😢
i look for your summary after the debate,it sums up quite nicely
Honorable Former PS Tripathy is much more fluent in his sayings and very impressive answers. Really very easy to understand
Really ???
I have certain doubts on your compitancy
Tripathiji can get a villan role in Bollywood easily like prem Chopra😂😂
Conclusion is -Make haste slowly
To boost investment, privatisation would be a better way than by expanding the fiscal deficit. Moreover, Asset Sales is not contractionary but it should be done with a caveat to not use the money to meet revenue expenditure (in particular Non Dev. Expenciture).
But a recent case in ONGC with HPCL presents a picture of phoney disinvestment.
Therefore at first, the government should proceed through Recycling of Assets.
Guess a Commerce Secretary instead of Finance Sec. along with a CA in place of the economist would have added more dimensions to the debate...
Nice
Introduction
* 90000cr last yr, Target FY 20-1.05 trillion rs
* Govt control retain-Non financial public sector units may go below majority stake(51%)-govt controlled institutions may chip in
Nature of Disinvestment
* Strategic disinvestment, ETFs, OFS for certain PSUs
Reasons For Disinvestment
* Depressed area, Bad investments, Duplication of work, private monopoly, not able to use govt funds judicially, not able to expand for job creation, not able to generate surplus
Economical Importance
* Govt-(51%)-Director nomination, policy influence, no minority backlash psychological and physical Management control , non concentration of economic power
* PSU - flexibility(below 51%- no cag/cvc audits), able to face competition from private sector
Critical Analysis
* Feasible
* Competition intact- govt bearing policy cost
* Should be carried in areas where private sector cannot enter-Consumed by public directly-railways, Air India, depressed area
Ways to achieve
* 51% share holding need not be direct
* Exchange credit Fund
* bunch of PSU in proportions, shares, listed on stock exchange for sale
* Offer for sale- public share holding 35%
Air India Disposal-Critical Analysis
* Good candidate, 10 lakh passengers/day, air India controls-18%
* Over staffed, unnecessary aircraft, subsidiaries, loans, bad assets but vast infrastructure( mro, ground handling, technical branch)- valuation issues
* Regulation on aviation sector and inc efficiency, part/core unit under govt, or selling equities are only way outs if not disinvestment
* FDI issues- immense social control, international media & state powers
* Land assets issue-only few PSU have land totally owned by them
Conclusion
* Many psu today are not very important economically and clearly don’t serve a strategic purpose. Also, many companies are serving the purpose well in the same area so disinvestment can be done eying huge assets such PSUs own but at the same it has to be done very carefully on case on case basis and critical issues like that of FDI have to be further looked into
Arre Frank bhaiya jara mechanic ko bula ke aawaz wala issue dikhwa lyo.plz
Government needs to cautious in such disinvestment because their might be chances of corruption on such deal of disinvestment also considering that disinvestment would not dilute governments economic power .
.....♨️ Thanks RS TV ♨️......
JAY MAHARASHTRA
jay shelke @ Jay ShambhuRaje...
Govt is good decision to development in India
Dr. Pullarao dominated debate.
Disinvestment approach should not only based upon the capitalists theory it makes hurdle for govt as well as led a market monopoly that ultimately shrink socio economic human development , rather then shout down them rebuild infra turned intra policies in better way.
Sir what the hell is that disturbance at background. It is really sad that you are not getting any kind of funds for atleast improvement of necessary things.
must developed india
RSTV 3M subscibers but ABP news 8 M subscirbers...HOW???
We probably need to disinvest RSTV! Hahaha
@@uttamjeetsingh7451 hahaha... I would rather disinvest viewers' brains
Good program tq rusian feerea
My suggestion is we should shed this idea of putting PSUs in backward area for its development.
Location has its own advantages nd migration should be encouraged and basic infra should be provided to migrants.
Look at China,what if they had put PSUs in Tibet or Xinjiang to develop them?
Also we should come out from Socialist ideal like prevention of concentration of wealth,by that logic we wouldn't have Google or Boeing.
We suffered till 1991 for a socialist and Gandhian utopia(village led Small scale development),when China,S Korea and Japan left us nd moved on far ahead.
Lol 😂😂
You are following Mao's ideology !.. Sir we all are humans.. What belongs to all must reach to all there shall not be any concentration of wealth.. U urself think . .. Humans have created division and superiority- inferiority .. thus we must go beyond self greed and think as a unit together
Providing basic infrastructure to migrants is itself costly idea and possible only upto certain limit. Development needs to be promoted in every area not just metros to make possible dream of 5 tn economy come true. Definitely there will always be some inter-regional difference in any country. If any region is deliberately cornered by government it promotes secessionist sentiments.
Lol, can't you already see the destruction caused by MNCs on environment?
Fast dininvest all govt co
Sell all govt co in India excellent
Govt duty not to do business as only misuse of tax papers money
Tha fuk is make haste slowly...
Disinvestment approach should not only based upon the capitalists theory it makes hurdle for govt as well as led a market monopoly that ultimately shrink socio economic human development , rather then shout down them rebuild infra turned intra policies in better way.
They did well but they could do the better.