Bengaluru: A forum of trade unions of HAL, BEL and BEML, under the banner Joint Action Forum (JAF) have opposed the proposed move of the Union Government to disinvest various public sector undertakings.
They termed the move to disinvest and strategic sale of the Central Public Sector Undertakings (CPSU) by union government as a 'mad drive' to sell people's assets. Meenakshi Sundaram, of JAF said, "CPSUs are the bedrock of our economic sovereignty and they are under a threat after the introduction of disinvestment and strategic investment. Even though the contribution of public sector undertakings to the national exchequer is enormous, still these kind of foolish moves are being taken up."
He pointed out that government is earning Rs 1.69 lakh crore from PSUs. He also criticized the government move to allow foreign direct investment in defence sectors.
As on March 29, 2017, the government has earned Rs 46,246 crore through disinvestment for the financial year 2016-17. For this financial year 2017-18, the target is Rs 72, 500 crore. Sundaram added that BJP’s recent election victories in assembly elections, the government is more emboldened to sell off CPSU. He felt the entry of foreign firms and private sector in defence industry will only increase defence expenditure. “This will only mean that people will be heavily taxed in the name of protection of national sovereignty," he said.
He explained that PSUs plough back their profit to government revenue through dividends and taxes. Thus they are helping to reduce the public tax burden.
If these industries which were built with taxpayers hard earned money are sold or control is transferred to private capitalists, the government will be deprived of future revenue and the common man will be burdened with more taxes.
He said the union government was misleading people by claiming that disinvestment is being done to promote people’s ownership of CPSU and efficient management. "Only a handful of people, who become majority shareholders, will control the company. Government is snatching the source of people's’ wealth and handing over to a few of their corporate friends,” he said.
"Yet another half-truth told by the government is that disinvestment helps to raise budgetary resources. Disinvestment will indeed get revenue only for this financial year, and permanently cut off the revenue earnings in future. This is like killing the goose that laid golden eggs!" he added.
