Defending privatisation coverage, Principal Economic Adviser Sanjeev Sanyal on Saturday mentioned many of the public sector undertakings (PSUs) that the federal government intends to promote had been really created by the non-public sector.
Stressing that this authorities is unapologetic about privatisation, he mentioned “you (Opposition) made the point that this (PSUs) has been built through the blood and sweat of the public sector. So, let me put the record straight on this: Actually much of what we are attempting to privatise were actually built by the private sector.”
Citing an instance, he mentioned Air India was merely taken away from the non-public sector and nationalised in 1953.
“In 1969, banks were simply taken away and nationalised. So, when people say that these institutions were built by the blood and sweat of the Indian bureaucracy, let me point out to you that these things were originally built by private companies,” he mentioned at India Today Conclave.
He mentioned that Finance Minister Nirmala Sitharaman has already outlined strategic and non-strategic sectors for the aim of privatisation and there might be naked minimal presence of the federal government within the strategic sector.
He additionally mentioned the federal government won’t draw back from creating new public sector entities the place ever required.
Giving an instance of the establishing of a growth finance establishment (DFI), he mentioned the federal government lately created the National Bank for Financing Infrastructure and Development (NaBFID) to fund the large infra requirement.
Talking in regards to the banking sector, he mentioned it’s a part of the strategic sector and the federal government may have its presence within the sector.
“There are certain reasons you want to do that…the fact of the matter is there are problems with private sector banking as well as. We have seen certain instances like YES Bank and so on. So, this is a sector where you need a public presence as well,” he mentioned.
Many nations all over the world have retained some public banking programs, and even had within the case of the worldwide monetary disaster to nationalise, he mentioned.
Last yr, the capital-starved YES Bank was positioned underneath a moratorium and its board was outmoded. Multiple companies are investigating fraud performed by the erstwhile administration.