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Major Privatization Drive In India
By IOL South Asia correspondent
NEW DELHI, Feb. 14 (IslamOnline) - In the run-up to the elections in four states, the BJP has taken unprecedented steps to privatize some major public sector companies.
Like other political parties, BJP has thought of all ways to win these crucial polls. It has taken many a bizarre step in the process. The current military build up against Pakistan is also seen as a part of BJP's strategy to win elections by raising the 'war against terrorism' slogan. This has failed, however, to catch the electorate's imagination.
The Cabinet Committee on Disinvestment (CCD) has recently decided to sell the government's stake in the petro-marketing company, IBP and telecom giant, VSNL. According to Union Minister for Disinvestment, Arun Shourie, the 33.58 per cent Government stake in IBP was bid and won by the public sector IOC.
Tatas, the icon of a flourishing public sector in India, acquired 25 percent stake in VSNL. Next are some other successful PSUs like telecom giants MTNL and BSNL, as well as Maruti automobile company which produces India's popular small cars in collaboration with Suzuki of Japan.
The decision was taken shortly after Prime Minister Atal Bihari Vajpayee said February 4 that the public sector units (PSU) are 'pillars' of the Indian economy and it is government policy to close only those units that cannot be revived. Soon thereafter the government sold assets of two of the most successful Indian PSUs. One of the companies, VSNL, has been so successful that it has earned a place in the Guinness Book of Records as the highest dividend-paying company in the world.
For the IBP disinvestment, IOC was preferred as the strategic partner over its multinational rival Royal Dutch Shell. The Tatas beat Reliance over VSNL shares. The latest disinvestment move of the government has enabled it to garner Rs 3,6890 m (US$ 768.5 m). In addition to the 25 percent government stake offered to the new partner in VSNL, another 1.97 per cent stake would be offered to the employees at a concessional rate.
Earlier, a similar attempt for disinvestment last year had created a controversy. The BALCO sale in Chattisgarh had to be called off following a controversy about the government selling its assets at throw-away prices. Besides, there have been failed attempts to disinvest Air India and Indian Airlines, the two public sector aviation companies.
However, the sudden 'gifting' away of the country's premier telecom company shortly before the elections has not gone without notice, especially because it flies in the face of the BJP's earlier stance on the issue of disinvestment.
Not only this, there is confusion on the BJP's intentions and actions over the issue of disinvestment. For the first time ever, the government has allowed one PSU giant to buy out another, which is surprisingly the first decision of its kind.
It is no secret that money bags supplied by big business houses to political parties for fighting elections prove to be a deciding factor for abrupt changes in policies prior to elections.
In the present circumstances, to camouflage its corrupt practices, the BJP has sent out confusing signals by allowing IOC, a PSU giant in the oil sector, to take over a rival. But, the way in which the private sector major, Tatas, have been allowed to buy a 25 per cent stake in
VSNL prior to the elections, has quite another story to tell.
A platform to fight for local products, was established by the BJP's mentor, the RSS. For all practical purposes it has collapsed to give way to the multinationals.
Under the present BJP dispensation the country has endured more scandals than any previous regime. And each scandal is wisely buried under inquiry reports. BJP and its allies are getting clean chits from pliant investigators in one scam after another. In the process the BJP has lost its ideological and ethical attraction to the common man.
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