Prime Minister Narendra Modi made a strong statement for privatization of public sector undertakings. He said that these burdened the taxpayers and stressed that the government has no business to be in business. He announced investment opportunities worth Rs.2.5 trillion in the national asset monetization pipeline outlined in the Union Budget through sale of around 100 assets of central public sector enterprises (CPSEs).

Speaking at a webinar on privatization and asset monetization, PM Modi said, “Today there are many underutilized and unutilized assets under the control of the government. We have set the target to monetize around 100 assets in oil, gas, port, airport, and power sector”. He also said that this process will continue in future also. He emphasized that the government is moving ahead with the mantra of monetize and modernize. The webinar was attended by investment bankers, sovereign and pension funds as well as domestic and international investors.

PM Modi underscored the need for adopting the best global practices for determining price discovery of these assets and mapping stakeholders. He added that “The implementation of these policies are equally important. Stable policies and the right processes are required to ensure transparency and competition”.

He also said that it is not necessary or possible for the government to remain the owner of many CPSEs, and the government should instead focus on public welfare and development. Modi emphasized that “that’s why I say the government has no business to remain in business”. He said the taxpayers’ money is used for keeping even loss-making PSEs running, whereas it should have been utilized for social welfare schemes for the poor and for meeting the aspirations of the youth. “PSEs need not be run simply because they were there for so many years and were the pet projects of someone,” he said.

PM Modi also said that this policy, Medium-Term Strategic Approach, is more than simply setting annual targets for disinvestment in PSEs, which will help in drawing up a roadmap for investments.

He showed confidence that many foreign investors are eager to open their first office in India, and suggested to take help of GIFT City in Ahmedabad. “We are working expeditiously to provide such plug-and-play facilities in the country”.

Modi said that privatization will also throw open employment opportunities to the youth. He reiterated that the government has Rs.111 trillion national infrastructure pipeline for the next five years. Out of this, nearly Rs.25 trillion may come from the private sector. He said that the budget has laid a road map for taking India to a high growth trajectory.