Country will have few PSUs but with solid presence, says FM Nirmala Sitharaman

Finance minister Nirmala Sitharaman on Thursday said the government’s privatisation policy of bare minimum public sector presence will mean that the remaining state-owned companies are scaled up and large with a significant presence in their areas of operation.

“In the sense, even if there are one or two or three (PSUs)…it will be a public sector undertaking of a good solid presence,” Sitharaman said at a conference hosted by Indian Institute of Management, Ahmedabad.

She also expressed confidence that the government will be able to meet the Rs 1.75 lakh-crore disinvestment target set in the FY22 budget. “Now, when the appetite is probably better…I’ve come up with a realistic number. I’ve not given an overestimated number, so I’m sure to achieve it,” she said.

Fuel tax

Taking note of the high burden of increasing fuel prices on consumers, the finance minister said both the Centre and states have to reduce fuel taxes.

“There’s just no hiding the fact that there is revenue there (fuel tax),” she said. “But it’s no longer competitive for anyone to say, ‘Centre, you reduce first, then the states will come on board’.”

The Centre and the states would have to meet and discuss any action on this matter, the minister said. “If eventually you want the consumers not to be bearing so much of a burden on this score, it is both the Centre and the states which will have to talk,” she said. “So, when are you going to talk? Yes, I concede that’s where action has to be (taken) and let’s see what we can do about it.”

Farm laws

Responding to questions on the farmer protests against three recent agriculture reform laws and the Centre’s refusal to bring a legal framework to ensure around minimum support price (MSP), the finance minister said, “Since MSP is not part of the three laws, to come and protest against the three laws and then raise MSP, for me, doesn’t add up.”

She also questioned why the issue wasn’t brought up during the Congress administration. “If indeed MSP has to be part of the statutes, given a law-based backing, why wasn’t it felt during the ten years of UPA (United Progressive Alliance)?”

Farmers have been protesting at Delhi’s borders and across the country for the past six months against the three farm laws passed during the monsoon session of Parliament last year.





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