Steel Plants NOT Under Disinvestment Plan; Says Union Govt Officials

Under the disinvestment plan, the government chose to privatize public sector banks and a general insurance company this year. But as of now, steel plants are not included under this plan, say officials.

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Steel Plants NOT Under Disinvestment Plan; Says Union Govt Officials THE POLICY TIMES

A disinvestment target of almost 1.75 lakh crore rupees has been set by the center for the fiscal year 2021-22 as suggested by Nirmala Sitharaman in the union budget this year. Though the set target of achieving funds from disinvestment was 2.1 lakh crore, the present budget did not aim for this mark this year. The steel plants have been excluded from the plan, at least for the current year.

What Are The Sectors That Come Under The Disinvestment Plan By The Govt?

Nirmala Sitharaman hinted at the selling of IDBI bank, Air India, BPCL, Neelachal Ispat Nigam Ltd., Container Corporation, shipping corporation, Pawan Hans among others during the running year. During the budget session, she had said, “Barring four strategic areas, PSUs in other sectors will be divested. All disinvestments announced so far will be completed in FY22. The NITI Aayog has been asked to work on the next list of central public sector companies for disinvestment”. Questions were raised on the steel plants disinvestment scheme on the Lok Sabha, to which the union minister for petroleum, steel, and natural gas, Dharmendra Pradhan clarified that no such scheme is formulated by the Govt as of yet.

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No Clarification on New Steel Plant Setup Also

On asking whether the Govt plans for any new steel plant setup, Pradhan said, “Steel is a de-regulated sector. Setting up of new steel Plants is the commercial decision of the individual company both public as well as the private sector, based on market dynamics”. About the disinvestment plan questions of the steel sector, the union minister further said, “as per the policy, steel production falls in the non-strategic sector. The revenue/disinvestment proceeds expected to be generated from disinvestment of steel plants cannot be assessed at this stage as it is dependent on the market conditions and investor interest at the time of the transaction”.

TPT Policy Advocacy and Recommendations

  • The government must formulate the disinvestments in a way that secures the livelihood of the employees working in those sectors for years.
  • The funds collected from the disinvestments must be utilized for the betterment of the Govt sectors that need schemes to provide better facilities to not only the govt employees but the commoners as well.
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Steel Plants NOT Under Disinvestment Plan; Says Union Govt Officials
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Under the disinvestment plan, the government chose to privatize public sector banks and a general insurance company this year. But as of now, steel plants are not included under this plan, say officials.
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THE POLICY TIMES
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