After the union budget 2019 pegged the disinvestment target for the year at Rs 1,05,000 crore, Nepean Capital on Friday said Narendra Modi government should focus on privatisation rather divesting stake in public sector undertakings (PSU).
In an interview to CNBC-TV18, Gautam Trivedi, co-founder and managing partner, said government must stop putting money in perennially loss-making PSUs.
Ajay Srivastava CEO, Dimensions Corporate Finance, said, "It is not about paying tax, it is about the direction. Directionally, you are talking about a socialistic orientation in a capitalistic economy. It is nothing to do with paying extra money, it is just directionally a wrong thing for an economy anywhere in the world, everywhere it is going the other way round. We are moving towards the Indira Gandhi regime of more than 90 percent tax equivalent in today's day. Directionally, I think it is a very bad move, I think it is a very socialistic kind of a gesture, which doesn't augur well for capital markets."