New Delhi: Congress Parliamentary Party chief Sonia Gandhi Tuesday opposed the BJP-led NDA government’s bid to privatise the railway’s Modern Coach Factory in her constituency Rae Bareli, Uttar Pradesh, and accused it of trying to sell it for a pittance.
Raising the issue during Zero Hour in the Lok Sabha, Gandhi said privatisation of the factory would result in job loss and defeat the whole purpose for which it was set up.
“The real concern is that they have chosen Modern Coach Factory for the experiment…I urge the government to protect the Modern Coach Factory and other PSUs and give respect to the farmers and their families,” she said.
Referring to India’s first PM Jawaharlal Nehru and how he had called Public Sector Undertakings (PSUs) “temples of modern India”, Gandhi said, “It hurts to see that most of such temples are in danger today. Despite profits, their employees are not being given salary on time and they have been put in trouble to benefit some industrialists.”
Gandhi also drew the attention of the Lok Sabha to the weak financial condition of state-run PSUs such as Hindustan Aeronautics Limited (HAL), Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
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Shouldn’t we demand an inquiry, asks Sonia
The Modern Coach Factory, Gandhi said, was set up by the Congress-led United Progressive Alliance government to boost manufacturing.
“It is one of the most modern plants that makes good quality coaches at cheap prices. I don’t know why this government wants to privatise it. Shouldn’t we demand an inquiry by a parliamentary committee in the matter?” she asked.
The former Congress president said the government has not taken the employees of the factory into confidence before taking such a decision and claimed that their future is in danger.
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India has benefited from a mixed economy. Why should a PSU be closed unless there are compelling financial reasons?
With due respect, mixed economy is past its expiry date. With globalisation and a fierce emphasis on free trade, with the economic landscape being shaped in a Darwinian manner of evolve or perish, PSUs with guaranteed job for life are unlikely to display the agility required to complete. Without adaptive capacity – primarily breakthrough innovation – the valuation of a PSU would be almost equivalent to the value of INS Viraat. It is not the State’s responsibility to become a source of salaries but for public and merit services.
Adding a note of caution: when Sub-prime crisis erupted it was largely due to the greed of the largest financial COrps in the world, the Goldmans, Citi, Leghbans, etc. But who eventually ended up paying for their misdeeds? The Taxpaying public of America. When the private enterprise is profitable, they all need Free trade and Capitalism. When things go south, they need peoples money to overcome their own issues, they cry out for Socialism. Pretty much the same thing happened with DHFC with UTI MF pumping in cash to avoid a domino effect in the market. Money that was entrusted by people of the land in UTI MFs. I agree that Govt should not be the source of Salaries to the people, but a market with no Govt oversite or control may not be the healthiest as history has shown.
Completely agree. That’s the reason there is so much debate about reforming capitalism; rescuing it from its own inherent weaknesses. Rules based capitalism is required. Robust rules need to be created and non-compliance needs to be punished. Is that possible in India? That’s a separate debate.
Leaders want control over PSU to adjust their near and dear.
State can’t do business. When we opted for open economy then why abusing private sector.
If someone is willing to buy at a higher price (under same conditions), Sonia should name them