I would agree with the principle of asset monetisation. However, I can't understand why the Govt. is eager in selling its moneymaking assets. Ex - Vizag Steel. There has been a great hue and cry in Andhra Pradesh over its privitisation. But as usual, being far away from Delhi, no one really cares. If it was a loss making entity, its okay to part with. But, why 100% privitisation, when one can make it public in the stockmarket.
There should also be some sort of regulations to prevent monopolies. I'll not take the name, but the company is on a buying spree of Indian ports. It now controls majority of the private ports.
There should be a fair monetisation policy. Assets should realise their true value.
As you said, peoples memory is short. The govt shouldn't take it for granted. There have been signs of crony capitalism over the past few years. It is for the govt to allay these fears.
very well analysed article on asset monetization.(AM)..Unlike privatization no sale of govt assets is involved, the assets return to the govt after the end of the lease period. Through AM govt can earn revenue to build more infrastructure. There is efficient utilization of the under utilized govt assets by the private sector, generates employment and income.
But there are many challenges and precautions. If not properly executed NMP will face the same fate as Make in India, Aatamnirbhar bharat etc. The govt needs a team of seasoned technocrats who are experts in making intellectual framework of agreements, quick in taking decisions and be ready with their strategies to combat any eventualities. Also the govt should not use the money raised through monetization to cover its fiscal deficit, but for more gross domestic capital formation.
Finally the reality has been accepted that our public sector requires management by the private sector. On their own, due to work ethics, they cannot be cost effective. However, this changeover will come at a cost. The profits will flow into few hands and the personnel doing the job more efficiently, will actually cost the employer less. This will have an impact on the economy, as the purchasing power of many will be reduced to fewer hands. But this bitter pill will have to be taken. Perhaps there will be light at the end of the tunnel.
Excellent
Wonderful
I would agree with the principle of asset monetisation. However, I can't understand why the Govt. is eager in selling its moneymaking assets. Ex - Vizag Steel. There has been a great hue and cry in Andhra Pradesh over its privitisation. But as usual, being far away from Delhi, no one really cares. If it was a loss making entity, its okay to part with. But, why 100% privitisation, when one can make it public in the stockmarket.
There should also be some sort of regulations to prevent monopolies. I'll not take the name, but the company is on a buying spree of Indian ports. It now controls majority of the private ports.
There should be a fair monetisation policy. Assets should realise their true value.
As you said, peoples memory is short. The govt shouldn't take it for granted. There have been signs of crony capitalism over the past few years. It is for the govt to allay these fears.
Dear Anil,
very well analysed article on asset monetization.(AM)..Unlike privatization no sale of govt assets is involved, the assets return to the govt after the end of the lease period. Through AM govt can earn revenue to build more infrastructure. There is efficient utilization of the under utilized govt assets by the private sector, generates employment and income.
But there are many challenges and precautions. If not properly executed NMP will face the same fate as Make in India, Aatamnirbhar bharat etc. The govt needs a team of seasoned technocrats who are experts in making intellectual framework of agreements, quick in taking decisions and be ready with their strategies to combat any eventualities. Also the govt should not use the money raised through monetization to cover its fiscal deficit, but for more gross domestic capital formation.
Finally the reality has been accepted that our public sector requires management by the private sector. On their own, due to work ethics, they cannot be cost effective. However, this changeover will come at a cost. The profits will flow into few hands and the personnel doing the job more efficiently, will actually cost the employer less. This will have an impact on the economy, as the purchasing power of many will be reduced to fewer hands. But this bitter pill will have to be taken. Perhaps there will be light at the end of the tunnel.
Well said .