PM for corporatising state-run firms

PM Narendra Modi on Friday said shutting down or disinvesting loss making state run firms weren’t the only options with the government to make these viable. He said the government will look at corporatising such firms to run them more efficiently.

“In our country reformists would say that you do disinvestment. If we do, then they would say this government has done ‘very good’. We have made shipping companies, which were running in losses, profitable,” the PM said.

"Do we have only two ways to improve things one either disinvest them or shut them down? But there is a third way which is to corporatise it and change its work culture. Bring efficiency and make it apolitical and we can change things," the PM said at the Hindustan Times Leadership Summit.

Talking about stalled projects, Modi said there were about 85 major projects which were not working. "Even their foundation stones could not be traced." "I reviewed them and I can tell you this that about 60-65 projects have started working satisfactorily. Dabhol power plant in Maharashtra, which was also not working for past two years, has also started working and power generation has begun from there," the PM said.

Modi said four million people responded to his appeal to give up their LPG subsidy. The PM said he decided to cut subsidy so those who consider themselves as reformists would have praised him for weeks. "They would have said this man is powerful as he has cut subsidies. But (for them), Modi is not reformist if with targeted subsidies he has checked leakages and saved government's money," he said.

Modi said his government has taken steps to check leakage of subsidy given on fertilisers and misuse of its end-use. This means we checked on urea's theft and "if reformist feel that this is reform then they must say it", he said amidst round of applause from audience.

The PM also said the 'good news' was that the Parliament is running. "The credit does not go to Modi but to all the parties," he said.