Swadeshi Jagaran Manch (SJM), the economic wing of the ruling Bharatiya Janata Party’s (BJP) ideological parent Rashtriya Swayamsevak Sangh (RSS) on Sunday passed a resolution opposing the Union government’s divestment and strategic sale programme of the state-owned assets.
SJM has demanded that Niti Aayog’s report on public sector enterprises (PSEs) be junked. Niti Aayog, the government think tank, had in June identified over 50 PSE assets for privatization in a bid to raise funds.
SJM has said that there is a need for a fresh assessment of the value and worth of PSEs.
“NITI ayog disinvestment report is handiwork of a few consultants, who continue to work on gameplan of vested interests, they should be kept away,” SJM said.
“A new report on divestment and strategic sale should be made with a new set of people, re-assessment of PSEs, their balance-sheet, asset-liability, strategic need in future and utility should be made many PSEs like Air India, BSNL are required for the strategic needs of the country. These PSUs can also be turned around national debate on the disinvestment in the profitable PSEs is the need of the hour,” it added.
SJM raised objections on the Hindustan Petroleum Corporation Limited’s (HPCL) stake sale to state-owned Oil and Natural Gas Corporation (ONGC).
“A white paper is needed on the previous disinvestment of HPCL, where ONGC acquired the equity. How HPCL's sale to ONGC benefited the operations of HPCL? The government must explain the benefits BPCL [Bharat Petroleum Corporation Limited] will get after its privatization.
“There are cases of ‘conflict of interest’ and formation of clique to capture India’s assets.
“There is a need to probe the way consultants are been appointed to advise the government and subsequently to assist them to offload the equities strategic sales [of PSUs] are prone to corrupt practices to benefit the particular business houses."
SJM has advocated for transparency in the way the strategic sale and divestments are being conducted.
“There is a need of establishing the transparent mechanism on strategic sales and divestment.”
On November 20, the Union government gave its Earlier, the government backed out of the China-led
nod for or disinvestment of five CPSEs including Bharat Petroleum Corporation Limited (BPCL). Regional Comprehensive Economic Partnership (RECP) amid intense pressure from SJM.