Modi government plans mass privatisation amid coronavirus crisis

While India faces the worst crisis of pandemic and suffering economy, the Narendra Modi government at the Center is preparing to move on the path of mass privatisation. The finance ministry has asked the think tank NITI Aayog to prepare a plan to sell the assets in the next 5 years.

While the country is struggling with deadly coronavirus pandemic and hampered economy, the Narendra Modi government at the Center is preparing to move on the path of mass privatization.

The finance ministry has asked the think tank NITI Aayog to prepare a plan to sell the assets in the next 5 years.A top official said that the government is considering moving forward on this path to meet its funding needs.

Addressing an event organized by the trade organization FICCI, Additional Secretary of the Ministry of Finance K.K. Rajarajan had said recently that the NITI Aayog has prepared a plan for asset monetization of Rs 1 lakh crore.

He said that now we have asked the NITI Aayog to prepare a plan for the next 5 years. He said that by preparing the plan, the market will be given an indication of which sectors the government can sell its stake in.

He said that the central government has taken several necessary steps to attract investment in the infrastructure sector.

Between 2019 and 2025, a plan of Rs 111 lakh crore has been prepared under the National Infrastructure Plan. According to the government official, the task force has submitted a report on this National Infrastructure Plan to Finance Minister Nirmala Sitharaman.

Along with this, several plans have been suggested, such as raising money from the bond market, land monetization, through which funds can be raised for this plan. In December, the Task Force submitted its initial report on the National Investment Plan, which described projects worth Rs 102 lakh crore, which are to be implemented in the next 5 years. Additional Secretary of the Ministry of Finance. Rajarajan said, "The total expenditure on this project is estimated at Rs 111 lakh crore. Out of this, projects worth Rs 44 lakh crore are in progress. Projects worth Rs 33 lakh crore are being prepared,while there is no information about projects worth Rs 22 lakh crore.

According to the report, on the National Investment Plan, the contribution of 39 per cent from the central government, 40 per cent from the states and 21 per cent from the private sector is expected.Government is also planning privatization of many other public institutions of the country like railways and LIC. The trade unions have been protesting against the idea of private investment by the government but the government has been ignoring the interests of the people for its own benefits.