Budget 2025 makes it clear the government’s privatisation mission has been buried. It wants to pump money into CPSEs, and receive ever-increasing dividends.
In MP’s Sidhi, the Mohan Yadav-led govt’s proposal to privatise district hospital has drawn flak from patients, doctors, patient rights groups & even some within the ruling BJP.
Giving a fresh look to the ambit of ‘material resources of the community’, the SC said it “may include” privately owned resources, but not every resource owned by an individual.
The experience of privatisation of railways across the world has been mixed. There have been some failures where the incentives did not play out and outcomes didn't match expectations.
While CPSE closures have tripled, new companies are coming up too. With profits & dividends being balanced by low disinvestment proceeds, question is whether govt’s strategic shift is working.
Using a GCC model, where the state contracts private operators, lowers costs and subsidies. It’s possible to run a high-quality service, as anyone who has used London’s buses will attest.
India needs to increase its spending in education and public health, so diverting the taxpayers’ money to these sectors instead of PSUs, would be an advisable step for the government.
Regulator seeks feedback on allowing firms to repurchase shares via exchanges after tax changes, as markets reel from war-led selloff and foreign outflows.
China patiently invested capital, skill and technology in coal gasification. Unlike it, we won’t move from words to action. As crude prices decline, we lose interest.
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