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Denial of privatization of railways, but how will the completion of disinvestment target? – jj
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Denial of privatization of railways, but how will the completion of disinvestment target?

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Workers are protesting about the privatization of some parts of the railway

At a time when millions of rail employees across the country are protesting against the privatization of the company, Railway Minister Piyush Goyal has refused to talk about any proposal for the privatization of Indian Railways in Parliament.

Piyush Goyal said in the Lok Sabha on Wednesday, "There has not been any initiative to give any passenger train in private hands."

The news came a few days ago that the preparations for the proposed Tejas Express from Lucknow to Delhi were completed.

In the second term of the Modi government, Finance Minister Nirmala Sitharaman spoke about the partnership between government and private companies for expanding the railway in its budget speech.

One of the largest rail services in the world Indian Railways has been in the hands of the government since its inception in 1853.

However, in the past few years, different governments have been handing over some of its works such as catering, services within the trains and some other things to private companies.

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Privatization of other companies

Railways are not the only government company, which has been privatized by the recent governments.

Since the beginning of 1990-91, the process of selling the public companies to private companies has continued in the times of Congress, BJP and other governments, and within these years government companies like telecom companies MTNL, Hindustan Zinc, Bharat Aluminum and Centaur Hotel Has been sold to private companies.

The process of disinvestment is also linked to globalization.

In this financial year (2019-20), the government has set a target of raising one lakh crore rupees through disinvestment.

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How easy it is

Economic analyst Pranoyu Guha Thakurta considers the target of more than one lakh crore rupees as 'very ambitious' and says that this case will also be in the same case which had been happening in the Congress-led governments of the previous Modi government or earlier where a government The company was forced to buy another's share, which has led to the government's disinvestment goal.

Pranjoy Guha Thakurta says that the one thing that is different in the disinvestment of this time is that the Finance Minister has said that the government's share of government rule will be reduced by less than 51%.

Less than 51 percent of the company's proprietary rights.

But Pranjoy says that such a big disinvestment will not be easy in the stock market's deteriorating situation and in a bad economy.

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From one pocket to another

A large section of economic and business world believes that the way in which the governmental companies have been sold in the last 30 or 29 years is not only disinvestment, but the shares of a government company are bought by another government company.

Alam Srinivas, senior journalist from the financial world, says, "It was the same way that you take money from one pocket and put it in another."

Alam says this reduces the budget deficit of the government, but neither does it make much difference in the shareholding of the company, neither does the company's working practices change better.

The argument in favor of disinvestment or disinvestment was that the way of working in government companies is no longer a professional, and because of that many government companies are in losses, therefore they should be privatized, which will change the way of work. And the money that comes from selling the company in private hands will be used to provide better services to the public.

But there is no data that the money that came from selling the shares of government companies, how many of them were employed in the betterment of the lives of ordinary people – such as education to improve health or basic amenities.

Zero budget farming mentioned by the finance minister during the budget

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Reduce the government's deficit

Alam Srinivas says, "The rule of almost all parties has been used by these funds to reduce their budget deficit, but in that process many profits have reached the brink of making the company sick."

In the budget of this time only the government will have to contribute one lakh crore rupees from the funds which the government companies give to the ruling by its share of profits. This is called a dividend.

One lakh crore rupees will come by selling government stake in disinvestment ie government companies.

The difficulty is that on one side, the government starts such a scheme, like in the accounts of farmers Rs 6000 annually, or special electricity for free electricity, but where does the money come from?

The economy is not getting better, if the incoming tax is not rising in that proportion, then these companies are raised from the disinvestment of government companies and they also sell shares of a government company.

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Selling oil companies too

Sometimes the example of the cash-rich company ONGC is in front of which it has to buy shares of the dubious Gujarat Petroleum Corporation. At the same time, he had to buy government stake in Hindustan Petroleum.

The result was that the cash-rich company ONGC had to take a loan recently.

Alam Srinivas says, "In such a way, the government looted the name of the name of reducing its budget deficit, but the companies making profits in the result were brought to the deficit or their financial condition became thin."

Several types of doubts are being expressed about the government's plans to sell stake in the power sector (oil and power) companies.

One thing is that the oil for which India needs to depend on imports, instead of selling the company of that region, the government should do deals through this field outside India – buying oil well or buying a foreigner Take a stake in the company.

Not only this, India's dependence will be lower on oil imports but also the huge savings of foreign exchange.

(For BBC Android's Android app you Click here can do. You us Facebook, Twitter, Instagram And Youtube But also can follow.)

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