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OPINION APRIL 09, 2021 | The Indian Eye 16

THe Modi cronyisM:

Privatizing the Public sector

undertakings (Psus)

The ineptitude of the Modi government in managing a sound fiscal policy having enough budgetary sources

of income, and the greed of his cronies to privatize PSUs at throwaway prices, is taking the country in the

dangerous direction of bankruptcy, poverty, and inequality through stunted or even negative GDP growth

raJendra dicHPaLLY his cronies, Modi government
adopted specific policies di-
ublic Sector undertak- rected at PSUs exclusively first
ings had been the pride to kill them and then sell them
Pof India because they at throwaway prices to his cro-
provided impressive infrastruc- nies.
ture for country’s development, The first such policy is
employment to millions, de- that Modi government forced
fense goods, dividends to the healthy PSUs to bail out loss
government to meet budgetary making PSUs. For exam-
support, food security and re- ple, Modi government forced
duced hunger and inequality ONGC to buy a barren gas
in the country. They worked block of Gujrat State Petro-
great at those places where the leum Corporation (GSPC)
private sector had failed. Since for Rs.8000 crores. In another
they worked for the public to move Modi government forced
achieve the goals discussed in ONGC to buy in an off-market
sentence one, profit was never deal the loss-making Hindu-
the yardstick of their achieve- Prime MInister Narendra Modi stan Petroleum Corporation
ments, though many of them Ltd (HPCL) for Rs.36.915
earned impressive profits. Such from pauper to $ billionaire Modi’s cronies such as Mukesh crores. Many unviable banks
profitable companies were overnight because he got 350 Ambani’s JIO provides JIO have been merged with healthy
named nav ratnas (nine gems million customers at one ver- GST Solutions. Many small banks. Instead of getting rid
in English) and maharatnas bal order of Modi forcing ev- and medium enterprises who of loss-making PSUs which
(very highly precious gems) by erybody to use his system of could not sustain this burden happened mainly because
the government of India. payment instead of cash. The closed down. of Modi government’s faulty
When Modi government second blunder was the faulty The final economic blunder fiscal policies, Modi govern-
came to power in May 2014, enactment of GST on July 1st, was the COVID-19 lock down ment forced their merger with
they introduced disastrous 2017. in March 2020 which drastical- healthy PSUs and thus made
fiscal policies and committed This act increased compli- ly curtailed most economic ac- healthy PSUs sick too. Instead
several blunders which killed ance work of companies tre- tivities and cut their earnings, of providing budgetary support
almost all industries including mendously and required down but JIO’s subscription and his to ailing PSU so that they be-
PSUs but benefitted his cro- payment of GST amount at the online shopping app JIOMart come viable, Modi government
nies because they got special time of shipping goods whose App flourished. has been busy preparing even
favors from the fiscal policies. collection from customer Then Serum Institute of In- healthy PSUs to become sick
The first such blunder was the would come back after months. dia CMD Dr. Cyrus Poonawal- so that they can be sold to his
demonetization of November This immensely increased the la (a Modi crony) fortunes cronies at deep discounts.
2016, which virtually stran- need for cash on which the jumped to $16 billion by writ- The second disastrous pol-
gulated the entire economy companies needed to pay in- ing of this article. Apart from icy for PSU is that Modi gov-
of India for months. Howev- terest and thus reduced the these general modus operan- ernment, after spoiling its own
er, Modis’s crony Vijay Shek- profitability of all industries dies of weakening all others revenue sources through taxes,
har Sharma of Paytm became but brought opportunities for along with PSUs and enriching Continued on next page... >>

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