“No Business to be in Business”: Modi Government to privatize loss making PSUs. And no, this does not equate to ‘selling the family’s silver’

In a major step towards monetization and modernization, Prime Minister Narendra Modi has once again made it clear that the Government has “no business to be in business” and aims to privatize all Public Sector Units (PSUs) except for the bare minimum in four strategic sectors.

Speaking at a Webinar on privatization at the Department on Investment and Public Asset Management (DIPAM), PM Modi asserted that the Government’s duty is to support enterprises and not own or run them.

“Fiscal support to sick PSUs puts burden on the economy and they should no be run just because of legacy”, he added.

Several of these PSUs are in fact a liability as their losses have to be funded by the State. In FY 16–20, Air India ran up losses of Rs 27,255 crore and BSNL/MTNL lost Rs 62,725 crore. Funding these meant fewer schools, roads, hospitals for the nation’s further development.

Around 100 such underutilized and unitized entities, which were earlier being supported by the taxpayer’s money, would now be monetized valued at Rs 2.5 lakh crores. “The private sector brings…