Business

Left parties accuse Govt. of allowing private sector to acquire PSUs

The Left parties on Tuesday accused the government of allowing the private sector to acquire public sector undertakings through a “creeping” route of disinvestment.

Calling attention of the government on its fresh disinvestment policy in the Rajya Sabha, Tapan Kumar Sen (CPI-M) said the shift in the sell-off strategy is a “plan to pave the way for creeping privatisation.”

He said the policy is creating an enabling situation to “final privatisation of the public sector undertakings”. He sought to dismiss the government argument that the 10 per cent disinvestment to give the public partnership in the PSUs, stating only a miniscule part of their capital is owned by the public.

Citing examples of ONGC, SAIL and BHEL, Mr. Sen said bulk of the shares offloaded in the market have been cornered by foreign institutional investors, corporate entities and rich private individuals.

He said the social sector expenditure is basically a budgetary responsibility and should not be met through sale of the PSU shares.

Mr. Sen wondered if the government was so hard pressed for resources, how it could allow revenue foregone of Rs. 4.50 lakh crore on account tax exemptions and tax arrears amounting to Rs. 1.90 lakh crore.

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Printable version | Jul 1, 2020 12:07:54 PM | https://www.thehindu.com/business/Left-parties-accuse-Govt.-of-allowing-private-sector-to-acquire-PSUs/article16850842.ece

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