Raring to go I Finance minister plans to mop up Rs 63,000 cr via divestment, raises Jan Dhan target to 10 crore accounts
Finance minister Arun Jaitley on Wednesday said the government is considering privatisation of some of the state-owned companies that are in the red.
However, for the time being, it will stick to selling minority stakes in profit-making public sector companies.
"Certainly, I would be interested to look at some public sector companies that could do much better in private hands. We cannot make the taxpayers pay for loss-making businesses," Jaitley said addressing a session at the India Economic Summit.
Sick and non-performing PSUs have been on the BJP-led government radar since it took charge. According to a finance ministry official, "Seventy nine central public sector enterprises have incurred losses in the last financial year. Out of these, 50 are sick. However, some 20 central PSEs have turned around also."
The government has already issued a diktat to these CPSEs to remain competitive or face flak.
The government also plans to mop up Rs 63,000 crore by offloading stake in the state-owned firms and introduce reforms in the mineral sector on the lines of coal block auction, sources said.
The finance minister is also looking at enhancing the target of its mega financial inclusion scheme – Jan Dhan Yojana.
Jaitley also took a dig on the developed nations saying WTO impasse is due to 'unreasonable posturing' by rich nations. He said the country is not opposed to trade facilitation pact, but would like the stock-holding system to continue till the matter finds a permanent redressal.
"India is certainly not opposed to trade facilitation. We are agreeing to a multilateral arrangement on trade facilitation but please keep the peace clause alive till the dispute is settled with regard to the stock holding," he said.
The clause insulates the members from penalty in case they violate the food subsidy cap, which is 10% of the output. He reiterated that the country needs to support its poor through a food security scheme that has been ratified by the Parliament, and would protect their interests.
The government is also looking at increasing the target of Dhan Yojana, Jaitley said at the summit. A banking and financial service department official told dna, "At a recent review meeting conducted by the FM, the matter related to revision of the targets for opening of the accounts under the Jan Dhan have been discussed. Initially, the target was to cover 7.5 crore households. Now we are looking at touching about 10 crore households by January next year."
Under the scheme, the banks have opened 6.98 crore accounts and have zeroed in on another 2.5 crore potential account holders for the scheme.
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