Swadeshi Jagaran Manch expresses ‘major concern’ over disinvestment of PSUs, asks government to ‘reconsider decision’

Tribune News Service

New Delhi, February 1

RSS affiliate Swadeshi Jagaran Manch on Monday appreciated the Narendra Modi government for its “enhanced and judicious spending for the survival of the people who lost their jobs or faced income losses” but raised concern over disinvestment of PSUs.

It called Finance Minister Nirmala Sitharaman’s announcement of disinvestment of PSUs a "major concern" and asked the government to "reconsider the decision".

“Announcement of carrying out disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, Pawan Hans, Bharat Earth Movers Limited (BEML), etc, is a cause of major concern," said Ashwani Mahajan of the Swadeshi Jagaran Manch.

"The government should reconsider its decision. The announcement of privatisation of public sector banks and an insurance company is also worrying.  Instead of doing strategic investment of these undertakings, it would be better if efforts are made to improve the performance of these enterprises, and after that only their equity is disinvested in the market,” said Mahajan.

"The strategic disinvestment of the enterprises created by tax payers’ money is not right. Sale through equity route would be a far better and transparent option, after improving their performance," he added.

Mahajan also called raising the FDI limit in the insurance sector from 49 per cent at present to 74 per cent "worrisome”.

“Increasing foreign dominance in the financial sector is not a prudent step. This increases foreign dominance over the financial resources of the country and impacts the development of the country," he said.