Covid brake to NDA's disinvestment agenda!
Covid-19 mutants Delta and Omicron as well as their fallout on investor sentiments are largely responsible for what looks like failure by the Union Government to realise its big ticket privatisation agenda during 2021-22.
Visakhapatnam: Covid-19 mutants Delta and Omicron as well as their fallout on investor sentiments are largely responsible for what looks like failure by the Union Government to realise its big ticket privatisation agenda during 2021-22.
This will be a row for third for the Government of India in achieving its target set for strategic disinvestment of Central Public Sector Undertakings (CPSUs) and stake sale in insurance firms like Life Insurance Corporation (LIC).
The Department of Investment and Public Investment Management (DIPAM) under the Ministry of Finance in its website states that it has realised Rs 32,845 crore in 2020-21, Rs 50,298 crore in 2019-20 (target Rs1.05 lakh crore), Rs 84,972 crore in 2018-19 (target Rs 80,000 crore) and Rs 1 lakh crore in 2017-18 as against the same target.
Unofficial sources said as on December 31 from privatisation, Rs 9,300-odd crore was relealised before the outbreak of third wave. This excludes proceeds from sale of Air India and Central Electronics Ltd. With little over two months left for completion of fiscal and Omicron at its peak in various States and elections due in UP and other parts, in all likelihood there may not be any miracle possible to mop up resources from disinvestment.
The strategic stake sale in Visakhapatnam-based Dredging Corporation of India Ltd (DCIL) to a consortium comprising Visakhapatnam, Deen Dayal (Kandla), JNPT and Paradip ports, had led to an income of nearly Rs.1,049 crore in 2018-19.
In the general budget for 2021-22, Union Finance Minister Nirmala Sitharaman had exuded confidence over achieving the target of Rs 1.75 lakh crore. However, pandemic-induced market sentiments, certain procedural hurdles and Opposition protests have delayed the outright sale of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, Neelachal Ispat Nigam Limited (NINL) and much talked about Initial Public Offering (IPO) of Life Insurance Corporation (LIC).
"Stiff resistance by the trade unions and our efforts to put up a joint struggle against the privatisation agenda of the BJP-led NDA Government have helped to stall it to a large extent. We hope the Centre will see reason in just demand as the workers are getting ready for the all India general strike on February 23 and 24," CITU national general secretary and former MP Tapan Sen told Bizz Buzz.
