Random Reflections – 10 27.04.2017
MAY DAY
Save Public Sector, Save Farmers, Save India Day
May Day is celebrated as International Workers Day remembering the sacrifices of the workers and also asserting the rights of workers. The first May Day was in May 1, 1886 where more than 300000 workers in 13000 businesses across the United States walked off their jobs demanding 8 hour day among other demands.
May Day is the word used to make distress call via Radio in case of any emergency. Since the Trade Unions feel that we are in an emergency they have called for calling May Day as Save Public Sector, Save Farmers, Save India Day” at the initiative of All India Bank Officers Confederation.
Public Sector which were called modern temples of India by Pandit Nehru is under attack for wrong reasons. Look at the past. In 1994, Bombay Plan laid way for Public Sector. It was prepared by Industrialists like JRD Tata, G.D. Birla, Ardeshir Dalai, Sriram, Kasturbhai Lalbhai, Sir Purshottamdas Takurdas and John Mathai. The plan envisaged that for the development of this country after Independence, we require public sector, we require the Govt to intervene in the Power Sector, Core Sector, Banking Sector, Infrastructure etc where huge investment was needed. Private Sector only wanted to enter sectors where they could make quick money. Now the heirs of these neo rich want the benefits of Public Sector and ownership of them. Today the Prime Minister says Govt has no business to be in business. This is the Chicago School of thought – Milton Friedman school of thought.
Public Sector has contributed a lot to the growth of the country’s economy. It is the duty of the Govt to provide it’s citizens goods and services. For this Govts create Institutions or Companies or Dept. Today Indian Postal System delivers letters at the cheapest cost. Indian Railways transports 2 crore passengers everyday at the cheapest cost. The moment BSNL entered mobile services the call charges dramatically came down. Indian Public Sector Banks serve in the most difficult areas of J&K, North East, Andamans and Chattisgarh. There are 320 Public Sector Enterprises in the country with a paid up capital of Rs.228334 Cr as on 31.03.2016 and they provided a dividend of Rs.70954 Cr in 2015-16. The return is 31%. Look at some interesting statistics for 2015-16. Total Turnover / revenue from operation was Rs.1854667 Cr. Profit earned was Rs.144523 Cr. Loss incurred by PSEs was Rs.28756 Cr. Net Profit of all 244 CPSES was Rs.115767 Cr. Contribution by duties and taxes was Rs.278075 Cr. They employ 12.34 Lakh people.
The market capitalisation of 46 CPSEs itself is Rs.1106766 Cr. Why the Govt should disinvest these enterprises? Those who are buying are buying for getting profit only. If that profit comes to Govt, it can be used for the people of the country.
Banks were Nationalised as they were not providing services to the majority. The objective was to serve the people and not profit alone. The Banks have done excellently well. As per SBI Ecoflash, during the period 2006 to 2017, the Banks have received a capital of Rs.1.29 Lakh crores whereas gave dividend around Rs.75000 crores and taxes around Rs.1.50 lakh crores.i.e.2.25 lakh crores against infusion of Rs.1.29 lakh crores. Is it not a good return? We keep comparing with other countries. China had injected $127 billion between 2004-2007. US injected $ 2.27 trillion after 2008 crisis. India injected $17 billion only. Is it not negligible? The deposits, advances and gross profit of all PSBs are steadily increasing but Govt calls them weak. It is only the NPA of few Corporates for which RBI and Govt are equally responsible along with the top executives of the Bank. No action will be taken against them but we will sell these Banks to the same culprits?
The Public Sector are constrained by the policies of the Govt. The policies after 1991 Liberalisation has lead to few corporates cornering large portion of loans and defaulting. Small borrowers are neglected. Farmers are neglected. Now after opening 27 Crore Jan Dhan A/cs, after handling demonetisation for which no compensation has been paid, the RBI and Govt are talking about Privatisation. A circular sent to Banks by an official of Finance Ministry has instructed Banks to go for Capital from the market. The RBI Governor is talking about merger and privatisation. This is after getting huge return in terms of Profit (Dividend) Taxes and Services. Again the same question comes. When the Private Sector is willing to buy for making profit why Govt should not earn this profit and use it for the people?
Farmers in the country want minimum support price to meet the cost of production, they require processing centres, they require small credits which they are not able to get forcing them to go to money lenders. They give us our food. Without them, the country cannot bring food security. But we are not doing enough for them. The priority sector lending norms have been so diluted in the last 25 years leading to negligence of the real farmers. No improvement in irrigation, preservation, processing and low prices as Minimum Support Price (MSP) are killing them. We have to come to their rescue.
So time has come to Save Public sector, Save Indian Farmers and Save our country.
Franco
The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways. – John F. Kennedy
No comments:
Post a Comment