Government has 'no business' doing business: Modi on PSU privatization
What's the story
Prime Minister Narendra Modi on Wednesday said that the government has "no business" being in business as he pushed for privatization of Public Sector Undertakings (PSUs).
"When a government engages in business, it leads to losses. The government is bound by rules and the lack of courage to take bold commercial decisions," he said.
He added the government has decided to monetize 100 PSUs.
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Modi was addressing a webinar by DIPAM
The PM was speaking during a webinar on privatization by the Department of Investment and Public Asset Management (DIPAM). He said PSUs burdened the taxpayer, adding that the government has "no business to be in business."
Quote
'Government's duty to support enterprises; not essential to run enterprises'
Modi said, "It is the government's duty to support enterprises and businesses. But it is not essential that it should own and run enterprises."
"Fiscal support to sick PSUs puts a burden on the economy and public sector units should not be run just because of legacy," the Prime Minister said, "Asset monetization and privatization decisions will help empower Indian citizens."
Plan
Government announces plans to monetize 100 PSUs
Modi said the government has decided to monetize 100 PSUs valuing Rs. 2.5 lakh crore.
"Our focus is to monetize and modernize. The private sector brings modern technology, a change in management mindset, and creates more efficient jobs," he said.
The money from this monetization will be utilized to enhance rural connectivity, supply safe drinking water, and make provisions for cheap housing, he said.
Information
Government to retain limited presence in 18 strategic sector
The latest push for privatization comes months after the government indicated that it would move out of non-strategic sectors. It had listed 18 strategic sectors, including banking, insurance, steel, fertilizer, petroleum, and defense equipment, where it would retain a limited presence.