'Swadeshi' hurdle in Centre's disinvestment plans

Finance Minister Nirmala Sitharaman announced that the government will undertake strategic stake sales in five state-run enterprises. (PTI file photo)

RSS affiliate Swadeshi Jagran Manch (SJM) has termed the strategic disinvestment plans mooted by the government as an “imprudent business decision” taken against “national interest”.

At a three-day 'National Conclave' in Haridwar that concluded on Sunday, the SJM adopted a resolution declaring the strategic disinvestment in Air India, Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India, Container Corporation as “uncalled for”.

“The onetime bounty by selling the equity will not be a wise business decision, especially when the government is reporting that their tax collection is not matching the target,” the SJM resolution said.

It demanded that the NITI Ayog's report on public sector enterprises “must be junked” and called for a fresh assessment of the value and worth of PSEs keeping in mind the vision of doubling the GDP in the next five years”.

“The SJM does believe that the government has no business to be in business, but resist the plan to handover the national assets to corporate houses of multinational corporations at throwaway prices,” the resolution said.

Last month, Finance Minister Nirmala Sitharaman announced that the government will undertake strategic stake sales in five state-run enterprises, including Bharat Petroleum Corporation Limited (BPCL), the Container Corporation of India (CONCOR) and the Shipping Corporation of India, along with the transfer of management control in these firms.

“Swadeshi Jagran Manch firmly believes that the present plan of disinvestments is the result of cahoots of certain consultants, bureaucrats influenced by some business houses,” the SJM resolution said, urging the government to look into the allegations of conflict of interests and conspiracy to capture Indian assets.

On BPCL, the SJM suggested that a better option to reduce government equity would be the stock markets.

“BPCL is in profits and is already giving the exchequer dividends. … The stock market will not only give better value for the equities but will also allow a fair chance to smaller investors to take the benefits of good performance of BPCL,” it said.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)