The Modi Government's PSU Privatisation Plans and Their Historical Context
The current government under Prime Minister Narendra Modi has set its sights on the privatisation of unproductive Public Sector Undertakings (PSUs). This initiative aims to eliminate inefficient and unproductive staff, as well as address reservations and preferential policies, while ensuring the retention of only the most capable workers. The goal is to boost profitability and ease financial burdens.
Privatisation: A Historical Perspective
It is important to note that privatisation is not an innovation introduced by the current Modi government. The practice was initiated in 1991 when the Congress-led government undertook a significant disinvestment program. During the 1991-92 financial year, a total of 31 PSUs were privatised, with a value of approximately Rs. 3000 crores. This early attempt to privatise PSUs demonstrates that this is not a new concept and should not be attributed solely to the Modi administration.
Accelerating the Disinvestment Process
The disinvestment process was further accelerated in 1996 when the United Front came into power. They established the Disinvestment Commission, which included political representatives from various parties such as Janata Dal, Communist Party of India (Marxist), Rajiv Jan Singh Dal (RJD), and Bahujan Samaj Party (BSP). Under the leadership of Prime Ministers I.P. Gujral and Devagouda, the government continued to explore strategies for the disinvestment of PSUs.
Challenges to the Modi Government's Plans
Despite the historical context and the establishment of various disinvestment commissions, the Modi government faces criticism and opposition. Critics often misinform and spread misinformation, labelling privatisation as a negative economic practice. However, it is crucial to recognise the actions of previous governments, particularly the Congress party, which initiated similar policies in the early 1990s.
Addressing Misconceptions
Some critics argue that only the Modi government should be blamed for privatisation efforts. This oversimplification is unfounded and serves only to mislead the public. If privatisation is truly detrimental to the economy, then critics should also hold the Congress party accountable for initiating the process in 1991. Historical data and records clearly show that various political parties have contributed to the disinvestment of PSUs over the years.
Conclusion
As the Modi government moves forward with its plans to privatise unproductive PSUs, it is essential to understand the historical context of these initiatives. The process of disinvestment has a long-standing history and has been actively pursued by various governments in India. While the current administration's vision is commendable, it should be seen as a continuation of efforts started decades ago.
In summary, the Modi government's focus on privatising PSUs is not without precedent. The process has been ongoing since 1991, and its historical context should be considered to provide a more comprehensive understanding of the government's initiatives. It is crucial to engage in informed discussions and evaluate the prospects of these policies based on factual evidence and historical data.