Amidst the ongoing wave of disinvestment of government-owned companies, Prime Minister Modi comes forward and speaks about the government’s plans of monetizing 100 underutilized and unused government-owned assets.
PM Modi informs that monetizing these 100 government-owned assets will lead to an investment opportunity of Rs 2.5 lakh crores (Rs 2.5 trillion), which the government would use for funding development projects, thereby empowering Indian economy.
The government has been putting up its stakes in different government-held organizations and companies for disinvestment and privatisation.
Speaking on this, PM clarifies why doing so is the need of the hour and the downside of the government indiging into doing business.
Monetization of 100 Govt-Owned Assets
Under the Asset Monetization Scheme, the government will be monetizing 100 government-owned assets, informed PM Modi on Wednesday.
All of these 100 assets are the ones either being under-utilized or unused.
Modi stated that monetizing these assets will lead to an investment opportunity of Rs 2.5 lakh crore.
‘The government’s motto is to monetize and modernize’, states CNBC, while quoting Modi in his addressal on various reforms undertaken in the season’s Union Budget.
“When the government monetizes, that space is filled by the private sector of the country. The private sector brings investment and best global practices with them.”, says Modi.
Govt Bound by Rules, Lacks Courage to Take Bold Step – Modi
While speaking about why privatisation is necessarily required in the country, PM Modi states that the government’s main job is to focus largely on development projects, instead of doing business.
He says, “When the government engages in business it leads to losses. The government is bound by rules and lacks the courage to take bold commercial decisions.”
He states that privatisation of Public Sector Units (PSUs) is the need of the hour. There was a time when public sector enterprises were established and the needs were different.
“There is always scope to reform the policy which was good 50-60 years ago. Now when we are bringing reform, our aim is to optimally utilise public money.”
Modi claims that the funds generated by monetizing and disinvesting government assets shall be used for funding development projects, which will in turn strengthen the country’s economy.