Swadeshi Jagran Manch opposes disinvestment in PSUs, urges Govt to reconsider

The Swadeshi Jagran Manch (SJM), an affiliate of the RSS, which pitches for swadeshi or indigenous production, has strongly opposed the Finance Minister Nirmala Sitharaman’s proposals on disinvestment in PSUs, privatization of banks and increasing FDI limits in the insurance sector.

‘’The announcement of carrying out disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, Pawan Hans, Bharat Earth Movers Limited (BEML), manufacturer of rolling stock for Metro is a cause of major concern. The government should reconsider this decision,’’ said SJM National Co-Convenor Dr Ashwani Mahajan. He stated that the announcement of privatisation of public sector banks and an insurance company is also worrying.

‘’It would be better that instead of doing a strategic investment of these undertakings, efforts are made to improve the performance of these enterprises; and after that only their equity is disinvested in the market. The strategic disinvestment of the enterprises created by taxpayers’ money is not right. Sale through equity route would be a far better and transparent option, after improving their performance,’’ said Dr Mahajan.

On the other hand, raising the FDI limit in the insurance sector from 49% at present to 74% is also worrisome as increasing foreign dominance in the financial sector is not a prudent step. ‘’This increases foreign dominance over the financial resources of the country and impacts the development of the country,’’ noted Dr Mahajan.

SJM, however, has congratulated the FM for presenting a budget, which will help revive the economy impacted by the worst pandemic of the century. ‘’Despite a Fiscal Deficit of 6.8 percent next year, we will be able to not only have high growth of GDP, but also bring back employment opportunities, hampered during pandemic last year and killed in the last two decades due to onslaught of Chinese imports,’’ said Dr Mahajan.

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