Preparation Of Ideas On Dozens Of Proposals For Privatization

Preparation of ideas on dozens of proposals for privatization, know which is the first focus.

The central government is going to consider the privatization of dozens of government companies during the next financial year.

Two sources related to the case said that the NITI Aayog has been given the responsibility of preparing the first list of government companies eligible for privatization.

Preparation of ideas on dozens of proposals for privatization: It will focus on companies that are not core sector and are making a profit. Being in profit, these companies will also get buyers and will also get good prices.

A source said that the motive to start with the companies making a profit is that investors will start taking interest in the strategic disinvestment process of the government.

Loss-making companies will later be launched for privatization. According to sources, two public sector banks may also be included in the first list of companies ready for privatization.

Both of these will be banks exempted from the Prompt Corrective Action (PCA) ambit of the Reserve Bank of India (RBI).

Along with this, the names of a non-life insurance company, SAIL’s Bhadravati and Salem plant, Central Electronics, Cement Corporation of India, NMDC’s Nagarnar Steel Plant, and Bharat Earth Movers can also be included.

By the way, sources say that the first to be named in this list of companies whose privatization process has started in the current financial year (2020-21).

It is noteworthy that the Union Cabinet had approved the privatization of Air India, Bharat Petroleum Corporation Limited (HPCL),.

Shipping Corporation, Container Corporation of India, and IDBI Bank in the current financial year. The sales process of some of these companies is in specific stages.

Preparation of ideas on dozens of proposals for privatization: There is a possibility of increasing the service charge due to the privatization of banks.

The All India Nationalized Banks Officers Federation (AINBOF) has opposed the privatization of state-run banks. The federation believes that this will increase the service charge and the banking service will be away from the reach of common people.

In a statement, AINBOF said that the effect of privatization will mainly be on the common man, as social responsibility will be lost somewhere in front of the objective of profit.

In its statement, AINBOF said that after privatization, banks will increase the service charge. Only those customers who have the ability to pay this increased fee will be served.

This will make banking service away from the common people and the basic objectives of nationalization of banks will be clouded.

According to the Federation, in the last decade of the last century, when the period of economic liberalization started, there was an attempt to privatize the public sector banks.

But all such efforts of subsequent governments failed. Most private banks which came into existence in the year 1991 have now closed down.