Govt PSU Sellout - Desperate & Destructive Idea. Here's why !!
In the current context, where the india inc has pretty much crapped out due to previous self goals of demo and gst, it is a terrible idea to disinvest psu's.
Over the last 70 yrs, people have loved and hated the psu's, but selling them now to payoff fiscal deficit is a desperate and destructive idea.
The legacy knowledge expertise built over the last 70 yrs will be lost and private sector will not be able to fill the gap leading to a serious erosion of the country's ability to withstand shocks.
In the recent telecom mess self created by this govt by allowing unfair trade practices & pricing by one player, the 2 major companies are now kaput. If that happens, then the growth of our country will be severely limited by infrastructure issues.
Let's say, if BSNL was a large player of mobile services across country then the shocks of losing major private players will be minimal. Same is the case with air india, etc...as private airlines are all struggling.
More importantly, if we have to withstand the onslaught from China, we need major PSU behemoths that can take on them. The rag tag private sector companies with doubtful balance sheets and P&L cannot even dream of competing with them. So a RCEP agreement with China and ASEAN countries will be a disaster and rightly getting out of it was the correct decision..
In short, india is not USA where the private sector is strong, and self sustaining and play fair trade practices.
Given, this, we need to double down on our PSU strategy and NOT foolishly gut them, sell them out and stand naked in front of some unprecedented competition. China backs all its companies, so the so called private companies in China are not really private, they are heavily funded and backed by their gvt.
Form a PSU governance board with stalwarts like Ratan Tata, Narayana Murthy, Venu Srinivasan, Nandan Nikekenai, Anand Majindra, Uday Kotak, etc.. to come up with a long term strategic plan for india, build competitive edge, and turn around the loss making units.
In fact, we should also look at forming new psu's in the areas of agriculture and take over farm lands and farming and employ the farmers instead.
This then can become a constant cash cow to find the welfare schemes instead of raising solely through taxes route.
As always the big question - will the self goal govt listen ? will the right wing listen and pressurise the govt to course correct ? I guess not....
In the current context, where the india inc has pretty much crapped out due to previous self goals of demo and gst, it is a terrible idea to disinvest psu's.
Over the last 70 yrs, people have loved and hated the psu's, but selling them now to payoff fiscal deficit is a desperate and destructive idea.
The legacy knowledge expertise built over the last 70 yrs will be lost and private sector will not be able to fill the gap leading to a serious erosion of the country's ability to withstand shocks.
In the recent telecom mess self created by this govt by allowing unfair trade practices & pricing by one player, the 2 major companies are now kaput. If that happens, then the growth of our country will be severely limited by infrastructure issues.
Let's say, if BSNL was a large player of mobile services across country then the shocks of losing major private players will be minimal. Same is the case with air india, etc...as private airlines are all struggling.
More importantly, if we have to withstand the onslaught from China, we need major PSU behemoths that can take on them. The rag tag private sector companies with doubtful balance sheets and P&L cannot even dream of competing with them. So a RCEP agreement with China and ASEAN countries will be a disaster and rightly getting out of it was the correct decision..
In short, india is not USA where the private sector is strong, and self sustaining and play fair trade practices.
Given, this, we need to double down on our PSU strategy and NOT foolishly gut them, sell them out and stand naked in front of some unprecedented competition. China backs all its companies, so the so called private companies in China are not really private, they are heavily funded and backed by their gvt.
Form a PSU governance board with stalwarts like Ratan Tata, Narayana Murthy, Venu Srinivasan, Nandan Nikekenai, Anand Majindra, Uday Kotak, etc.. to come up with a long term strategic plan for india, build competitive edge, and turn around the loss making units.
In fact, we should also look at forming new psu's in the areas of agriculture and take over farm lands and farming and employ the farmers instead.
This then can become a constant cash cow to find the welfare schemes instead of raising solely through taxes route.
As always the big question - will the self goal govt listen ? will the right wing listen and pressurise the govt to course correct ? I guess not....
