Budget 2022: No rethink on privatisation, says Economic Survey amid street protests

Tribune News Service

New Delhi, January 31

Despite the unrest among youth due to joblessness being attributed to the Centre selling off public sector enterprises (PSEs), the Economic Survey showed no hesitation in backing the ongoing privatisation drive while citing the successful example of Air India.

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Terming privatisation of Air India as having boosted the divestment drive, the Survey said the new Public Sector Enterprise Policy and Asset Monetisation Strategy introduced by the government reaffirm its commitment towards privatisation and strategic disinvestment of Public Sector Enterprises.

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“The privatisation of Air India has been particularly important, not only in terms of garnering disinvestment proceeds but also for boosting the privatisation drive,” it said of the first complete privatisation in 20 years that will serve as the precursor of sell-off of BPCL, Shipping Corporation, Pawan Hans, IDBI Bank, Concor, BEM, and RINL. Since 2016, the government has given ‘in-principle’ approval for strategic disinvestment of 35 CPSEs and IDBI Bank.

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“In order to realise the mission of New, Self-reliant India, there was a need to redefine public sector participation in business enterprises and to encourage private sector participation in all sectors,” the Survey said.

Last year, the Modi government approved a policy of strategic disinvestment of public sector enterprises that will provide a clear roadmap for disinvestment in all non-strategic and strategic sectors.

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