All things Money Thread

Big Daddy

Super User
You can see how much "fat lady talk" is going on. Everyone is into proving that India's economy is not growing. People are only talking about obvious things. No one can really solve the problem. People in India want the economy to grow but they also want markets closed for foreign products and investments.
 

adsatinder

explorer
Is Indian economic slowdown responsible for global slump? Economists say no
IMF's chief economist Gita Gopinath had on Monday said at World Economic Forum underway at Davos that India was primarily responsible for the downgrade in global growth. Indian economists, however, have refuted the claim.




Aishwarya Paliwal
New DelhiJanuary 22, 2020
UPDATED: January 22, 2020 17:12 IST



Is Indian economic slowdown responsible for global slump? Economists say no (Reuters)

Indian economists have refuted the International Monetary Fund's controversial remark that slump in the Indian economy has affected global growth.
IMF's chief economist Gita Gopinath had on Monday said at World Economic Forum underway at Davos that India was primarily responsible for the downgrade in global growth. When asked the extent to which the economic slowdown in India had impacted global forecasts, Gita Gopinath said, "Simple calculation says it would be over 80 per cent."
Indian economists, however, have refuted the claim. Akash Jindal, an economist, said that not India but the United States and China were responsible for the global slowdown.
"For the past 2 years, the US-China trade war has been creating havoc across the world. Blaming India isn't correct. When one compares India's global trade with that of the US and China it is minuscule, then how can India impact world GDP?" Akash Jindal said.
"Recent events like US-Iran relations, coupled with global export degeneration are abetting GDP slowdown," he added.
Principal economist India Research & Ratings Sunil Sinha also echoed with Akash Jindal's opinion, "Global trade is in doldrums which is impacting India's GDP, not the other way round. Exports across the globe have been hit, which have dampened Indian exports, as a result, India cannot be blamed for the downfall in the world's GDP."
"The world is in midst of a churn, from the US to Europe to Russia - not a single country is showing tremendous growth, trade has been impacted the most in the last 2 years with neither US not China agreeing to back down. World GDP is a reflection of these trade strains, blaming India isn't correct," Sunil Sinha said.

However, NR Bhanumurthy Professor at National Institute of Public Finance and Policy, said that IMF's forecast at 4.8 per cent for Indian growth wasn't way off the mark, it is in fact in line with many other forecasts.
On India to be blamed for the global economic slowdown he said, "India cannot impact the world economy single-handedly and bring it down as IMF is projecting. US-China trade war, US tensions with Iran, exports moving at snail's pace are the primary reasons for the condition of the global economy. "


Is Indian economic slowdown responsible for global slump? Economists say no
 

adsatinder

explorer
US investors concerned over India’s economic slowdown, social unrest and Modi’s disinterest
Countries like Australia, Britain, China have offices across the world with the sole mission to bring FDI. India doesn’t have a global investment promotion agency.
NITIN PAI 21 January, 2020 3:58 pm IST

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PM Narendra Modi at a rally in Ramlila Maidan in New Delhi
PM Narendra Modi at a rally in Ramlila Maidan in New Delhi | Photo: Suraj Singh Bisht | ThePrint
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Even if we ignore the fact that the Indian economy is in a severe slowdown, we should not forget even for a moment that India’s per capita GDP is around $2000, it needs to create around 2 crore jobs every year, and needs every little point of economic growth that it can get.
So, in terms of the level of income, India is in the same league as Congo, East Timor, Nicaragua, and Nigeria. Two of India’s subcontinental neighbours, Maldives and Sri Lanka, are far ahead of us. At around $10,000, the average income in China is 400 per cent higher than India’s. Given our tax/GDP ratios, the Indian government’s combined expenditure on everything — including health, education, defence, rural development, and social welfare — is a paltry $300 per year.

In other words, the Indian government can only spend less than a dollar a day per person from all the revenues it raises. This is the main reason why India has poor quality government schools, too few government hospitals, terrible roads in cities, and generally unsatisfactory public services.
If the per capita incomes were higher, the Indian government’s tax collections would be higher and it would be able to deliver better public services.
Also read: Why no one in Modi govt met Amazon’s Jeff Bezos this time and instead rudely snubbed him
Can’t afford
Why is this relevant? Because a country with a low per capita income of $2000 ought to be looking for every possible way to raise economic growth and attract investment. So, the manner in which the Narendra Modi government treated an investor who committed to invest $1 billion into the Indian economy is just wrong, whatever its political undertones. In the global competition to attract foreign direct investment (FDI), India is not only competing with Bangladesh, Vietnam and China; it is competing with the developed world economies of the United States, Europe and Singapore. Giving a potential investor a cold shoulder not only discourages that investor, but also sends a negative signal to global investors. If your per capita income is $60,000, perhaps you can afford such damage. At $2000, India simply cannot.
Every investor and investment will encounter some opposition from some quarters of the economy. No company likes competitors with deep pockets. It should not surprise us that there are firms, individuals and political parties that do not like Amazon. Countries that ignore such protests and open their doors for foreign investors prosper. Countries that don’t — and India was among them before 1992 — don’t.

Also read: Modi govt must learn — instinctive response not always best solution to economic problems
FDI is linked to reputation
Also, investors usually play up big numbers to attract public attention, while the reality might be different. We should not be surprised if Amazon’s billion-dollar investment commitment falls short. Yet, a credible investor who announces a huge commitment to India signals to others that India is a good place to put your money on. If investment commitments didn’t matter, what were the Vibrant Gujarat summits all about then?
In fact, a lot of the FDI that flows into India does so merely because of India’s reputation and track record. Unlike countries that receive many times more FDI than India, New Delhi doesn’t have a serious, professional, global investment promotion agency. Countries like Singapore, Australia, Britain, China and Switzerland have offices in all of the world’s financial and business hubs staffed with hundreds of specialists tasked with the singular mission of bringing more FDI into their country. Investment promotion is a hard sales job and countries have to do it to succeed in the marketplace for FDI. Contrary to what many in New Delhi believe, every investor has a lot of options. The bigger the investor, the greater the options. The costs of publicly rebuffing credible investors can be significant and hard to reverse.
Also read: If 10 years from now you see 30 types of onions in Indian markets, this is how it happened
See the ground reality
In my conversations with various investors in several United States cities over the past couple of weeks, I encountered near-universal concern over the economic slowdown, social unrest and Prime Minister Narendra Modi’s political disinterest in addressing either of these issues. The good news was that most investors were still positive about India and had seen good returns on their investment in recent times. The not-so-bad news was that almost everyone I spoke to were asking questions about the future.
One emerging markets investor in the Bay Area told me that when they do not trust institutions to be independent and competent, they begin to reduce their investment horizons. This means that while FDI inflows to a country will continue, the kind of companies, projects and sectors they will go into will change. India needs long-term investors who will help build its infrastructure, factories and development centres that can create jobs and the desirable kind of development. These investors create new winners and spread out the prosperity. But if investors decide that the long-term is too risky, they might go for short-term investment in existing companies, thereby narrowing the number of winners. Managing the socio-political consequences of this kind of development will be tricky.

Despite the slowdown, India’s reputation of being a dynamic growth economy still weighs in its favour. Yet the uncalled-for controversy over Jeff Bezos is an opportunity for the Modi government to calmly reflect on the ground realities and the national interest. The ground reality is an average per capita income of $2000, over 20 crore young people who need jobs, and an economy that has slowed down to 5 per cent growth. The national interest is 8 per cent economic growth, which cannot be achieved without sustained growth in foreign investment.
The author is the director of the Takshashila Institution, an independent centre for research and education in public policy. Views are personal.



US investors concerned over India’s economic slowdown, social unrest and Modi’s disinterest
 

adsatinder

explorer
You can see how much "fat lady talk" is going on. Everyone is into proving that India's economy is not growing. People are only talking about obvious things. No one can really solve the problem. People in India want the economy to grow but they also want markets closed for foreign products and investments.
Practically,
problem is not the Investors or anyone else.

Problem is with Govt Policies which are not at all favourable for Business / Industry and so many other aspects.
The policies are made only on paper.
Who want such Mouth talking People at all ?
Nothing is on practical ground.
You have to bribe everyone to get ahead with paperwork.
Why ?
You will be able to understand this if you are going to establish an industry or if joining one also will see so many problems.
We are practically facing all this in our daily routine.
Paperworks are a big problem.
Running industry is seen as a Milk giving Cow by Top Govt Position holders & Govt Servants in their own pockets.
Why ?
Required Infrastructure for an industry is also made by businessman with help of similar interest people of group.
Indian business and industries are working with good quality only.
But Govt is not giving proper support in terms of papers, infrastructure etc.
These Ruling people have No Practical idea about our requirements.
Forget about requirement of Common Man and their necessities for current and future requirements.
 
Last edited:

adsatinder

explorer
5 simple things to do to revive the economy
No miracle man can revive the economy without revitalising the credit cycle.

ET CONTRIBUTORS|
Jan 22, 2020, 09.14 PM IST



5 simple things to do to revive the economy
No miracle man can revive the economy without revitalising the credit cycle.

ET CONTRIBUTORS | Jan 22, 2020, 09.14 PM IST


BCCL

1579805940411.png


[Image: need-push-BCCL] The banking sector reforms that started in 2015 is the single largest economic reform that is being done since independence.
By Sandip Sen

The economic slowdown has lasted four quarters and is unlikely to go away in a hurry. The banking sector problems are deep rooted and though the reforms have begun in right earnest, reviving credit flow will take time. No miracle man can revive the economy without revitalising the credit cycle. For that to happen opening credit lines is not sufficient.

The structural reforms would be necessary that protects banks from more bad loans and loan frauds. So what should the Government do avoid an impending recession? Here are 5 simple things to do to revive the economy without doing too much, some of which I proposed at the Lok Sabha TV budget discussion last week and some in my book India Emerging published by Bloomsbury last April.

1) Restructure PSBs in line with the Private Sector Banks
The banking sector reforms that started in 2015 is the single largest economic reform that is being done since independence. These reforms even when it happened in the UK and the US in the eighties took a decade to give results. The Indian scene is slightly more complicated with the Public Sector Banks PSBs having the role and responsibility to provide banking to the millions of people at the bottom of the pyramid.

Though the Government has speedily delivered the massive NCLT infrastructure to dispose stressed assets, a lot more needs to be done. One of them is to restructure the PSBs in line with the private sector banks and take the burden off the ‘Branch Manager’ in distributing credit as well as monitoring and recovering it. The private sector banks have independent verticals looking into these functions and the ‘Branch Manager’ is merely an enabler and not the key decision maker. It is time that PSB’s restructure and take off the burden from the Branch Manager’s shoulder.

2) Treat 42 food parks and rural markets as priority sector investments
The Modi Government has sanctioned 42 food parks which could revive both the agriculture sector as well as bring down food inflation significantly. Each project has come up on 50 to 100 acre land and was supposed to support 25 to 30 food processing and packaging units generating a revenue of at least Rs 500 crore per food park, generating work for 5000 employees and helping 25,000 farmers process their products.

The food parks have all exceeded the time frame of 3 to 5 years given for their completion. Unfortunately only two of the food parks Srini in Andhra Pradesh and Patanjali in Uttarakhand have achieved completion over 50%. Sixteen food parks are 25% complete and the balance have less than 10% of the investment committed. There are many reasons that have caused these food parks to perform below par and one of the reasons is because banks are not financing these units. Even successful parks like the Srini park are having to borrow at a rate of 14%.

The finance minister needs to ensure that financing of equipment in the food parks including processing and packaging equipment is at a priority sector lending rate applicable to the farm sector and that major bottlenecks hampering the development of food parks are looked into.

3) Build 100,000 water storage reservoirs to recharge aquifers annually
India has become a water deficient nation since 2010 when the per capita water availability dropped to below 1700 cubic meter per person. As per a WB report 29% of the water bodies were in dire straits then. The situation has deteriorated during the last decade with per capita water availability dropping to 1400 cubic metres. Despite spending over 50% of the substantial MNREGA funds on water bodies and aquifer development there has been little progress. Meanwhile funds are being pumped into Swachh Bharat and Piped water projects which cannot succeed unless there’s is adequate water to use.

Even the Namami Gange project cannot succeed without more fresh water input into the ecosystem. Most of the lakes and ponds of yesteryear’s have disappeared due to rapid urban development. These waterbodies need to be rebuild and connected to the natural aquifers. Our civilisation always prospered around water bodies. So the need is to budget and build and maintain large ponds or earthen water storage ponds to recharge aquifers and also for community use. They cost less than Rs 30 lakh to build and could be easily build within the annual MNREGA budget of Rs 40,000 – Rs 60,000 crores if planned for properly. Such capacity building needs to be added and monitored each year like Swachh Bharat initiatives.

4) Implement a long term energy security plan
India needs a long term energy security plan that ensures smooth transition from polluting fossil fuels to non polluting gas and renewable energy smoothly. It needs to consolidate all its oil companies into integrated players with production, refining and marketing capability. The Modi Government has taken the first step by merging ONGC with HP but more needs to be done. It needs manufacturing and mining initiatives for energy storage cells, rare earths. This needs a long term research and planning with futuristic tie ups and careful investment.

India also needs a new gas pricing policy. It also needs investment in gas terminals, gas pipelines to ensure low cost distribution in key consumption centres. It needs the creation of hybrid facilities where gas and renewable energy and coal and renewable energy ( CSP plants ) can give efficient and low cost stable energy output. It needs to ensure that existing energy sector giants like BHEL, GAIL, and the private sector Chloride, Emerson, Toshiba etc. and state mining development corporations and other stakeholders to make this transition and develop local manufacturing capability for India’s energy security.

5) Simplify GST and reduce 4 tax slabs to 2 slabs
Last but not the least is to bite the bullet on GST reforms. The GST in its present form is highly complicated. It has two many clauses and sub clauses, too many amendments and too many exemptions. GST is a consumption tax and it should be levied like one. Today it is a complex amalgamation of at least seven taxes. It is based on the architecture of the defunct central excise act 1950 with the clauses of sales tax to service tax all factored in. It is not business friendly in the current form and I have discussed it in detail in my book India Emerging : From Policy Paralysis to Hyper Economics published in April 2019 by Bloomsbury.

The GST act needs an startup solution. A smart way to collect consumption tax is needed so that it is not unduly complicated and is also a business friendly solution that also prevents tax theft. Also all over the world most nations have 2 tax slabs, so that is possibly the best formula to stick to. Only 3 nations include India have 4 GST tax slabs.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)


Read this article in :Hindi





5 simple things to do to revive the economy
 

Big Daddy

Super User
5 simple things to do to revive the economy
No miracle man can revive the economy without revitalising the credit cycle.

ET CONTRIBUTORS|
Jan 22, 2020, 09.14 PM IST



5 simple things to do to revive the economy
No miracle man can revive the economy without revitalising the credit cycle.

ET CONTRIBUTORS | Jan 22, 2020, 09.14 PM IST


BCCL

View attachment 780508

[Image: need-push-BCCL] The banking sector reforms that started in 2015 is the single largest economic reform that is being done since independence.
By Sandip Sen

The economic slowdown has lasted four quarters and is unlikely to go away in a hurry. The banking sector problems are deep rooted and though the reforms have begun in right earnest, reviving credit flow will take time. No miracle man can revive the economy without revitalising the credit cycle. For that to happen opening credit lines is not sufficient.

The structural reforms would be necessary that protects banks from more bad loans and loan frauds. So what should the Government do avoid an impending recession? Here are 5 simple things to do to revive the economy without doing too much, some of which I proposed at the Lok Sabha TV budget discussion last week and some in my book India Emerging published by Bloomsbury last April.

1) Restructure PSBs in line with the Private Sector Banks
The banking sector reforms that started in 2015 is the single largest economic reform that is being done since independence. These reforms even when it happened in the UK and the US in the eighties took a decade to give results. The Indian scene is slightly more complicated with the Public Sector Banks PSBs having the role and responsibility to provide banking to the millions of people at the bottom of the pyramid.

Though the Government has speedily delivered the massive NCLT infrastructure to dispose stressed assets, a lot more needs to be done. One of them is to restructure the PSBs in line with the private sector banks and take the burden off the ‘Branch Manager’ in distributing credit as well as monitoring and recovering it. The private sector banks have independent verticals looking into these functions and the ‘Branch Manager’ is merely an enabler and not the key decision maker. It is time that PSB’s restructure and take off the burden from the Branch Manager’s shoulder.

2) Treat 42 food parks and rural markets as priority sector investments
The Modi Government has sanctioned 42 food parks which could revive both the agriculture sector as well as bring down food inflation significantly. Each project has come up on 50 to 100 acre land and was supposed to support 25 to 30 food processing and packaging units generating a revenue of at least Rs 500 crore per food park, generating work for 5000 employees and helping 25,000 farmers process their products.

The food parks have all exceeded the time frame of 3 to 5 years given for their completion. Unfortunately only two of the food parks Srini in Andhra Pradesh and Patanjali in Uttarakhand have achieved completion over 50%. Sixteen food parks are 25% complete and the balance have less than 10% of the investment committed. There are many reasons that have caused these food parks to perform below par and one of the reasons is because banks are not financing these units. Even successful parks like the Srini park are having to borrow at a rate of 14%.

The finance minister needs to ensure that financing of equipment in the food parks including processing and packaging equipment is at a priority sector lending rate applicable to the farm sector and that major bottlenecks hampering the development of food parks are looked into.

3) Build 100,000 water storage reservoirs to recharge aquifers annually
India has become a water deficient nation since 2010 when the per capita water availability dropped to below 1700 cubic meter per person. As per a WB report 29% of the water bodies were in dire straits then. The situation has deteriorated during the last decade with per capita water availability dropping to 1400 cubic metres. Despite spending over 50% of the substantial MNREGA funds on water bodies and aquifer development there has been little progress. Meanwhile funds are being pumped into Swachh Bharat and Piped water projects which cannot succeed unless there’s is adequate water to use.

Even the Namami Gange project cannot succeed without more fresh water input into the ecosystem. Most of the lakes and ponds of yesteryear’s have disappeared due to rapid urban development. These waterbodies need to be rebuild and connected to the natural aquifers. Our civilisation always prospered around water bodies. So the need is to budget and build and maintain large ponds or earthen water storage ponds to recharge aquifers and also for community use. They cost less than Rs 30 lakh to build and could be easily build within the annual MNREGA budget of Rs 40,000 – Rs 60,000 crores if planned for properly. Such capacity building needs to be added and monitored each year like Swachh Bharat initiatives.

4) Implement a long term energy security plan
India needs a long term energy security plan that ensures smooth transition from polluting fossil fuels to non polluting gas and renewable energy smoothly. It needs to consolidate all its oil companies into integrated players with production, refining and marketing capability. The Modi Government has taken the first step by merging ONGC with HP but more needs to be done. It needs manufacturing and mining initiatives for energy storage cells, rare earths. This needs a long term research and planning with futuristic tie ups and careful investment.

India also needs a new gas pricing policy. It also needs investment in gas terminals, gas pipelines to ensure low cost distribution in key consumption centres. It needs the creation of hybrid facilities where gas and renewable energy and coal and renewable energy ( CSP plants ) can give efficient and low cost stable energy output. It needs to ensure that existing energy sector giants like BHEL, GAIL, and the private sector Chloride, Emerson, Toshiba etc. and state mining development corporations and other stakeholders to make this transition and develop local manufacturing capability for India’s energy security.

5) Simplify GST and reduce 4 tax slabs to 2 slabs
Last but not the least is to bite the bullet on GST reforms. The GST in its present form is highly complicated. It has two many clauses and sub clauses, too many amendments and too many exemptions. GST is a consumption tax and it should be levied like one. Today it is a complex amalgamation of at least seven taxes. It is based on the architecture of the defunct central excise act 1950 with the clauses of sales tax to service tax all factored in. It is not business friendly in the current form and I have discussed it in detail in my book India Emerging : From Policy Paralysis to Hyper Economics published in April 2019 by Bloomsbury.

The GST act needs an startup solution. A smart way to collect consumption tax is needed so that it is not unduly complicated and is also a business friendly solution that also prevents tax theft. Also all over the world most nations have 2 tax slabs, so that is possibly the best formula to stick to. Only 3 nations include India have 4 GST tax slabs.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)


Read this article in :Hindi





5 simple things to do to revive the economy

None of these five things can happen if there is no money to fund these things. There is only one solution: Open the economy for foreign investments by making conditions attractive to foreign investors.
 

adsatinder

explorer
Centre has become bankrupt, economy witnessing worst-ever-crisis: Yashwant Sinha

indiatoday.in

Jan 27, 2020 6:27 PM

Yashwant Sinha has called the CAA move by Modi government a diversionary tactic to deflect public attention from economic slowdown, which he said, is the worst-ever in the country.



Former Union finance minister Yashwant Sinha has hit out at the Narendra Modi government after it announced sale of 100 per cent stake in the debt-ridden national carrier Air India. Yashwant Sinha said the Centre has become bankrupt under the Modi government while India's economy is passing through its worst-ever crisis.

Yashwant Sinha upped the campaign against the Modi government while addressing a press conference at the Samajwadi Party headquarters in Lucknow along with Congress leader Shatrughan Sinha and former UP chief minister and SP president on Monday.

"The Centre is once again planning to sell Air India but there will not be any buyers due to the worst economic slowdown which the country is facing at present. The Centre has become bankrupt and there is no elbow room left on the fiscal side," said Yashwant Sinha, who had served as the Union finance minister under former prime ministers late Chndrashekhar and late Atal Bihari Vajpayee.

Yashwant Singh said the Citizenship Amendment Act (CAA) was a diversionary move by the Modi government.

He said, "Through the Citizenship Amendment Act, National Register of Citizens (NRC) and National Population Register (NPR), the government is trying to divert attention from the real issues. The economy is passing through its worst-ever crisis and the revival looks very unlikely."

He alleged that the Centre is behaving "like a dictator" instead of reaching out to people who are on the streets protesting the CAA.

Yashwant Sinha said, "There is unrest and atmosphere of fear in the country due to the Citizenship Amendment Act and NRC. It is the duty of every responsible government to reach out to the people to allay their fears but the Centre is behaving like a dictator."

"Uttar Pradesh has faced maximum criticism but Chief Minister Yogi Adityanath is using unconstitutional language. Union Home Minister Amit Shah also said that the government won't budge an inch on its decision to implement the CAA. The CAA is against the basic structure of the Constitution," Yashwant Sinha said.

"There was no need for this kind of amendment in the CAA," he said. Yashwant Sinha also slammed the UP police for allegedly taking away blankets of Muslim women protesting against the CAA in Lucknow.

Parliament passed the CAA in December last year expediting the process of acquiring citizenship for the non-Muslim illegal immigrants from Bangladesh, Pakistan and Afghanistan. The government said the targeted illegal immigrants fled their home countries to escape religious persecution. The Opposition, activists and various Muslim groups have been protesting the enactment of the CAA and also the proposal to implement a pan-India NRC.

 

Big Daddy

Super User
India is a totally weird country. Did any Indians ever see how much US was worried about debt 10 years ago? Well, that is what people do to avoid these sudden dictatorial looking changes. You have to think in advance, otherwise, the changes come all of a sudden.

A typical government keeps kicking the can down the road until it reaches a dead end. This is what has happened to India. What is worse is that people now say that the government is not listening to them. Well, it cannot listen to the people because people want the government to kick that can as it has done before and that option does not exist. India is barely hanging on to its credit rating one notch about junk status. This means Indian government needs some serious cuts. Government is doing that and change the government if you like, the problem does not go away and neither does the solution.

If people do not like it then plan ahead and monitor government spending. Lazy Indians do not do their job in a democracy and then blame the government. The whole idea of the right to information is that people need to keep educated about what is happening and take charge of their future.
 

adsatinder

explorer
If people do not like it then plan ahead and monitor government spending. Lazy Indians do not do their job in a democracy and then blame the government. The whole idea of the right to information is that people need to keep educated about what is happening and take charge of their future.
This Govt is trying to kill RTI !
LOL !
 
Last edited:

adsatinder

explorer
Rediff.com » Business » In Centre's fire sale: land, factories, apartments, office space

In Centre's fire sale: land, factories, apartments, office space
By Arup Roychoudhury
January 27, 2020 15:41 IST

Processes are at an advanced stage for a number of assets of the Centre and central public sector enterprises (CPSEs) to be monetised. The assets include office space, apartments, factories, land, power transmission assets, sports stadia, gas pipelines, and telecom assets.

Illustration: Dominic Xavier/Rediff.com.


With the privatisation of a number of marquee State-owned companies unlikely to be completed this fiscal year, the central government has turned to asset monetisation to come close to the ambitious 2019-20 divestment target of Rs 1.05 trillion.
Business Standard has learnt from sources in the government as well as asset reconstruction companies that processes are at an advanced stage for a number of assets of the Centre and central public sector enterprises (CPSEs) to be monetised.
The assets include office space, apartments, factories, land, power transmission assets, sports stadia, gas pipelines, and telecom assets.

“A lot of departments and CPSEs have been mobilised to speed up asset monetisation,” said a senior government official.
A source in a major asset reconstruction company, which is working with the government, said assets worth around Rs 1 trillion could be monetised before March 31 this year.
“These asset sales are very easy to carry out because they are operating assets, and there is a lot of interest for them. The risk is minimal,” the person said.
However, the government official quoted above said it was difficult to set a target for asset monetisation.
“In the case of CPSE assets, the proceeds of any sale would go to the company concerned. The company will then pay dividend to the government. If it is a loss-making company, then in accordance with the Companies Act, it cannot pay dividend. Hence we cannot put a number to asset monetisation easily, compared to sale of stake on exchanges or privatisation,” the official said.
There are two distinct strands to the Centre’s asset monetisation plans.
One is being led by the NITI Aayog and includes monetising five-six centrally-owned stadiums (including the iconic Jawaharlal Nehru Stadium), power transmission assets, gas pipelines of GAIL, telecom assets of BSNL and MTNL, as well as heritage rail operations like in Darjeeling, Kalka-Shimla, and the Nilgiris.
The plan is to monetise these assets through methods as varied as the toll-operate-transfer (ToT) route, infrastructure investment trusts, and long-term concessions, sources said.
A second government official said discussions on these assets had been going on at the highest levels and all departments concerned had been mobilised.
The only assets on which not much progress has been made are the rail heritage routes.
The second strand is being carried out by the Department of Investment and Public Asset Management (DIPAM). These are non-core assets of firms identified for strategic sale, mergers of public sector undertakings, or closure.
The assets include land, factories, apartments and office space belonging to CPSEs like Project and Development India, Hindustan Prefab, Bridge and Roof Co, Scooters India, Bharat Pumps and Compressors, Pawan Hans, Air India, Hindustan Newsprint, Hindustan Fluorocarbon and others.
While the land and the factory assets are spread across the country, the office spaces and apartments are mostly in Delhi NCR and Mumbai/Navi Mumbai.
“Some assets belonging to BEML have already been released to an asset reconstruction company. It will now identify buyers and investors and decide the best method to garner revenue from the assets,” the second official said.
Earlier this month, DIPAM officials had conceded that the government is unlikely to complete the strategic sale of Bharat Petroleum Corporation (BPCL), Container Corporation of India (Concor), and Air India by March-end.
So far, DIPAM has garnered only Rs 18,095 crore, a measly 17 per cent of the full-year budgeted target.
The sale of the companies mentioned above could have easily helped in achieving the Rs 1.05-trillion mark, especially Bharat Petroleum.

The Centre’s 53.3 per cent stake in BPCL is currently valued at Rs 52,500 crore. With a healthy premium, that alone could have fetched around Rs 70,000 crore.
That means that DIPAM now has to ensure that other plans, like NTPC’s acquisition of NEEPCO and THDC Ltd, and the privatisation of Shipping Corp come through before March 31.


Arup Roychoudhuryin New Delhi

Source: source

In Centre's fire sale: land, factories, apartments, office space
 
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