Economic Survey sets Rs 25,000 cr/yr target from PSU disinvestment
Press Trust of India / New Delhi Jul 02, 2009, 12:16 IST
The government should sell a minimum 10 per cent stake in all unlisted public sector enterprises and "auction" those that can't be revived, the Economic Survey said, while recommending a disinvestment target of Rs 25,000 crore annually.
"Revitalise the disinvestment programme and plan to generate at least Rs 25,000 crore per year," said the Survey tabled in Parliament today.
The prescription coincides with government declaring disinvestment as one of its top most priorities for mobilisation of resources, particularly, as it is free from the pressures of the Left parties that had obstructed the process in the last five years.
Asking the government to sell a minimum of 10 per cent equity in all profit-making unlisted PSUs, it added: "Complete the process of selling 5-10 per cent equity in previously identified profit making non-Navratnas."
As regards the loss-making PSUs, the Survey said the government needs to "auction all loss making PSUs that cannot be revived. For those in which net worth is zero, allow negative bidding in the form of debt-write off."
Finance Minister Pranab Mukherjee is likely to unveil the road map for disinvestment in the Budget, to be presented in the Lok Sabha on July 6.
Explain this to me like a two year old. If you sell all your sources of income - how do you provide for development. Should the focus not be on running these companies profitably (Revenue for the government). A short term transfer of assets to the private sector is tantamount to burning your MF Hussain paintings to cook lunch
Posted by: Vikram
July 25 , 2009, 11:14 IST
Looks like you have no clue of how development takes place in a capitalist society. The govt. has always screwed up. Tell me one area where they have got it right.... Housing? Education? Even the military deals for procuring much needed weaponry. Private property has created development even in countries like India. Private sector creates jobs higher income and thus taxes which the govt. steals and puts into the economy which I again feel is inefficient... Free enterprises create wealth and this wealth gets transferd to areas such as devlopment... Public sectors did not get India to this high growth stage... It is in the best interest of a nation that the govt. disinvests in businesses and let the market forces decide... The marketplace works and govt. does not.
developing countres like india . government sectors plsy very crucial role. if the government disinvesment the government sectors .the private sectors do unfair trade practices.which government sectors companies runn in loss better to change the polices.
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