The chief minister of Tamil Nadu, MK Stalin, suggested on Friday that the central government had not consulted with states enough about the plan to raise money using the country’s infrastructure, and he urged Prime Minister Narendra Modi to National Monetization Pipeline to reconsider.
Stalin asked the prime minister to decide this after talks with stakeholders and state governments and wrote a letter on the matter, saying that the plan would only lead to priceless government assets that would go to a few conglomerates or large corporations.
“People have rights to public sector companies as land of people and state governments has been given for this,” he said, adding that the impact on the economy, employees of these companies and dependent small businesses was unclear.
The letter came a day after the prime minister told the state assembly that the privatization of state-owned companies was not in the national interest and that the government of Tamil Nadu would oppose the center’s attempt to sell publicly owned PSUs. to privatize.
India’s public sector companies are public assets designed to stimulate economic growth and provide jobs, and they are also the foundation of small and micro enterprises, Stalin said.
“We believe that selling or leasing PSUs is not in the national interest,” he said.
The public sector units functioned for greater public goods and prosperity and an objective of profit alone is not the aim of such ventures, he added.
The prime minister had said he would write to Prime Minister Narendra Modi to express his government’s opposition to the union government following a trend towards privatization of PSUs, he said.
Announced last month by Union Finance Minister Nirmala Sitharaman, the National Asset Monetization Pipeline plans to monetize Rs 6 lakh crore in state assets over the next four years to boost infrastructure spending and boost economic growth.
The plan aims to transfer already built assets such as gas pipelines, roads, train stations and storage facilities to the private sector for long-term lease, the government said, stressing that this would not amount to privatization or divestment. .
Opposition parties have been less than convinced, however, and many of Congress, Trinamool Congress and the Left, who govern a number of states, have sharply criticized the program, saying it would help only a handful of industrialists and harm the employees of these state-owned companies.