Wednesday, December 23, 2009

It's D for Disinvestment

By: Subhadeep Bhattacharjee

After weeks of yo-yo the Indian markets showed some upsurge. The reason well the Finance Minister Pranab Mukerjee spelled 'D for Disinvestment'. The Sensex witnessed spectacular rally post the Finance Minister's comments on 9–10% GDP growth prediction in the coming years. The Sensex added a whopping 539 points to yesterday's close. The Nifty wasn't far behind rallied over 158 points resulting in it being the strongest day in the last two months or 35 trading sessions.

Pranab Mukherkjee said that the Centre was seriously looking into the issue of Disinvestment of certain Public Sector Employees. With no Left Hand Drive at the centre the government has put divestment programme on fast track. It is keen to push through the follow-on public offer of state-owned NMDC (National Mineral Development Corporation) this fiscal and aims to divest 8.38% stake followed by Engineers India's (EIL). Another state owned company, Hindustan Copper and Power Grid will go for public issue next financial year, the management says.

Pranab will surely have hurt the Left loyalist in his home state when he uttered the word Disinvestment. But again West Bengal is no model to follow or is it? When it comes to the industrial sector West Bengal is a perfect example of what not to do. If the patrons of Communism are against Disinvestment what is the shining example they have on their hand to show? Which Government body in West Bengal or Tripura can be taken a shining example of Left's governance?

The Government wants to invest on the social sector and unlike it needs to raise capital for this mission. So disinvestment of Public Sector Units is the best possible option that the government has on it's hand. This Disinvestment will raise capital for the growth of the India especially rural India as per the vision of the government. The government will still hold controlling stakes in these organizations so the question of them totally going into the private hands doesn't arise.

Government needs to raise funds for the Social Sector and disinvestment is the best possible option. Those against disinvestment are not against but are against the fact that employees in these PSU's might need to become more accountable. If Left opposes Disinvestment will i support more taxes on the Aam Aadmi as capital has to be raised by the government? It's high the left sees politics in logic than in ideology. Unlike a common myth the Government just cannot print bundles of money so we should support D for Disinvestment.


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