Who Government employees were afraid of the Modi government’s policies promoting privatization, this is a relief news for them. The Government of India is planning to improve the condition of more than 200 government companies, so that they can be made more profitable. This indicates a new stance different from the aggressive privatization program of Prime Minister Narendra Modi. News agency Reuters has given this information in one of its reports quoting government sources.
In the year 2021, the privatization program of a large part of India’s huge public sector of $ 600 billion was announced. But this program had slowed down before the general elections and now after the coming of the coalition government, the privatization program is facing more resistance.
Long term targets will be made for government companies
A new scheme may come in the budget to be presented on July 23. This includes selling the land owned by these companies which is hardly being used and monetization of other assets. Two officials with knowledge of the policy said this in the report. The government’s aim is to raise $24 billion in this financial year and re-invest that money in these companies. Also, instead of short term targets, 5 year performance and production targets will be set for every company. There was no talk before about improving the condition of government companies.
2,30,000 managers will be trained
âInstead of indiscriminate sale of government assets, the focus is now on enhancing the intrinsic value of government companies,â said an official, requesting anonymity in the report. Among other schemes, the government intends to undertake succession planning in most government companies. It has also been proposed to train 2,30,000 managers for senior roles in companies. At present, the government itself appoints top officials in government companies.
(With inputs from Reuters)
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