Post Tagged with: "Disinvestment"

Dematerialising LIC’s policies- It can have implications for small policy holders

Dematerialising LIC’s policies- It can have implications for small policy holders

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I have come across a report today (https://www.business-standard.com/article/finance/lic-exploring-all-options-on-dematerialisation-of-insurance-policies-122091500928_1.html) that the Insurance Regulatory Authority of India (IRDAI) has proposed to “dematerialise” all insurance policies, including life insurance policies. As a follow up measure, LIC seems to be considering to set up its own repository, in view of the large number of[Read More…]

by 16/09/2022 Comments are Disabled India
Privatisation of NMDC’s steel plant at Nagarnar village in Bastar raises serious legal issues

Privatisation of NMDC’s steel plant at Nagarnar village in Bastar raises serious legal issues

  To Shri Anil Kumar Jha Union Tribal Affairs Secretary   Shri Alok Tandon Union Mines Secretary   Shri Amitabh Jain Chief Secretary Chhattisgarh   Dear S/Shri Jha, Tandon and Jain, I understand that NMDC’s steel plant near Nagarnar in Bastar district of Chattisgarh has been demerged from NMDC and the Centre is fast-tracking its privatisation. There are some important[Read More…]

by 06/09/2022 Comments are Disabled India
Hindustan Latex Lifecare Ltd (HLL)- Empower the COPSE, not dismantle it through privatisation

Hindustan Latex Lifecare Ltd (HLL)- Empower the COPSE, not dismantle it through privatisation

  To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Over the last few months, I have addressed the government more than once, expressing my concern at the undue haste in which the government has resorted to privatising CPSEs and their valuable assets. For ready reference, some of those letters may be accessed at the following web-links. https://countercurrents.org/2022/03/lic-ipo-gross-injustice-to-the-smaller-lic-policy-holders-especially-those-belonging-to-the-scs-sts-obcs/ https://www.moneylife.in/article/lic-ipo-gross-underestimated-valuation-put-it-on-hold-says-eas-sarma/66146.html https://countercurrents.org/2022/01/cpse-disinvestment-valuation-approach-flawed/ https://countercurrents.org/2022/07/privatisation-of-psu-banks-legal-and-other-implications/[Read More…]

by 05/09/2022 Comments are Disabled India
NDA government’s mismanagement of the CPSEs- ONGC a case in point

NDA government’s mismanagement of the CPSEs- ONGC a case in point

  To Shri Rajiv Gauba Union Cabinet Secretary Dear Shri Gauba, I have cautioned the government several times on the need to strengthen the CPSEs from the point of view of promoting the country’s self-reliance, rather than weaken and privatise them. The way the government has dealt with the Maharatna oil behemoth, the ONGC is a case in point. In particular,[Read More…]

by 22/08/2022 Comments are Disabled India
Empower the CPSEs, not privatise them

Empower the CPSEs, not privatise them

“We must have full control over our electricity production and performance”, said the French Prime Minister recently, when she informed the Parliament of the government’s decision to increase its equity share from the present 83.76% to 100% in the EDF company, France’s premier nuclear electricity utility and one of the largest producers of nuclear electricity in the world. France has[Read More…]

by 14/07/2022 Comments are Disabled India
Privatisation of PSU banks- legal and other implications

Privatisation of PSU banks- legal and other implications

 To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, In your Budget speech last year, you had mentioned that the government would privatise a few PSU banks in due course. There are reports on statements originating from your Ministry that the government would introduce a Bill during the coming monsoon session for enabling it to privatise PSU banks in[Read More…]

by 01/07/2022 Comments are Disabled India
Asset monetisation counter productive- Analyse before you rush into it

Asset monetisation counter productive- Analyse before you rush into it

 To Smt Nirmala Sitharaman Union Finance Minister   Dear Smt Sitharaman, Your Ministry seems to be rushing into monetisation of assets of the CPSEs without adequate due diligence on the comparative costs and benefits. For example, I have come across a news report (https://www.livemint.com/industry/infrastructure/govt-asks-oil-psus-to-come-up-with-monetization-plan-11655236473972.html) that your ministry has been persuading the Ministry of Petroleum & Natural Gas (MPNG) to ensure[Read More…]

by 15/06/2022 Comments are Disabled India
Hindutva Robbery of the Commons in India

Hindutva Robbery of the Commons in India

The Indian National Congress under the leadership of Prime Minister Mr Rajiv Gandhi was responsible for the beginning of half-hearted liberalisation policies in the name of economic development and modernisation in India. The half-hearted liberalisation, privatisation and globalisation policies have become the cornerstone of new economic policies launched by the Prime Minister Dr Manmohan Singh. These policies are in full[Read More…]

by 11/06/2022 Comments are Disabled India
Why rush into privatising BEML, a CPSE that caters to the defence forces?

Why rush into privatising BEML, a CPSE that caters to the defence forces?

 To Shri Rajnath Singh Union Defence Minister   Dear Shri Rajnath Singh, Kindly refer to my earlier letter dated 3-2-2022 (https://countercurrents.org/2022/02/should-the-government-disinvest-beml-at-all-is-it-not-imprudent/) raising concerns against the proposed privatisation of Bharat Earth Movers Ltd. (BEML) which is a CPSE under the administrative oversight of your ministry and plays a crucial role in meeting the strategic requirements of the defence forces. I have extracted below[Read More…]

by 08/06/2022 Comments are Disabled India
 No valid justification for your Ministry to privatise the CEL, despite allegations of bid rigging in the earlier sale

 No valid justification for your Ministry to privatise the CEL, despite allegations of bid rigging in the earlier sale

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I refer to my earlier letter of May 19, 2022 (http://eassarma.in/sites/default/files/public/Drop-privatisation-forthwith.pdf) calling upon your Ministry to drop all further disinvestment proposals, in view of the dubious outcomes of the sale of the CEL and Pawan Hans and the potential fraudulent aspects of the LIC IPO. Apparently, the Centre is in[Read More…]

by 04/06/2022 Comments are Disabled India
 Imprudent for govt to divest its residual equity share of 29.5% in HZL

 Imprudent for govt to divest its residual equity share of 29.5% in HZL

To Shri Rajiv Gauba Union Cabinet Secretary Dear Shri Gauba, In the past, I had written to your predecessors and the Ministry of Mines not to divest the government’s share of equity in Hindustan Zinc Ltd. (HZL), keeping in view the strategic nature of Zinc as a scarce mineral. I understand from recent news reports (https://www.news18.com/news/business/vedanta-cant-buy-more-than-5-stake-in-hindustan-zinc-if-divestment-happens-anil-agarwal-5243107.html) that the government has[Read More…]

by 27/05/2022 Comments are Disabled India
Is your government consciously defrauding the policyholders of the LIC?

Is your government consciously defrauding the policyholders of the LIC?

 To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Please refer to my letters dated 6-3-2022, 11-4-2022, 16-4-2022 & 23-4-2022 addressed to you on the manner in which the proposed LIC IPO would do gross injustice to millions of its policyholders, largely belonging to the SCs/STs/OBCs.   In my letters cited, I have pointed out to you the five-fold[Read More…]

by 28/04/2022 Comments are Disabled India
LIC IPO- Gross Injustice To The Smaller LIC Policy Holders

LIC IPO- Gross Injustice To The Smaller LIC Policy Holders

  To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Please refer to my letters dated 6-3-2022, 11-4-2022 & 16-4-2022 addressed to you on the manner in which the proposed LIC IPO would do gross injustice to its policyholders, largely belonging to the SCs/STs/OBCs (https://countercurrents.org/2022/03/lic-ipo-gross-injustice-to-the-smaller-lic-policy-holders-especially-those-belonging-to-the-scs-sts-obcs/ & https://countercurrents.org/2022/04/most-disadvantaged-policy-holders-to-lose-out-in-lic-ipo/ & https://countercurrents.org/2022/04/lic-ipo-gross-injustice-to-the-smaller-lic-policy-holders/) In my earlier correspondence, I had brought to your notice the following disturbing[Read More…]

by 23/04/2022 Comments are Disabled India
LIC IPO- Gross Injustice To The Smaller LIC Policy Holders

LIC IPO- Gross Injustice To The Smaller LIC Policy Holders

  To   Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Please refer to my letters dated 6-3-2022  & 11-4-2022 addressed to you on the manner in which the proposed LIC IPO would do gross injustice to its policyholders, largely belonging to the SCs/STs/OBCs (https://countercurrents.org/2022/03/lic-ipo-gross-injustice-to-the-smaller-lic-policy-holders-especially-those-belonging-to-the-scs-sts-obcs/ & https://countercurrents.org/2022/04/most-disadvantaged-policy-holders-to-lose-out-in-lic-ipo/). In my correspondence, I had pointed out again and again how the IPO would[Read More…]

by 16/04/2022 Comments are Disabled India
Most disadvantaged policy holders to lose out in LIC IPO

Most disadvantaged policy holders to lose out in LIC IPO

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Please refer to my letter dated 6-3-2022 addressed to you on the manner in which the proposed LIC IPO would do gross injustice to the policy holders of the LIC, largely belonging to the SCs/STs/OBCs (https://countercurrents.org/2022/03/lic-ipo-gross-injustice-to-the-smaller-lic-policy-holders-especially-those-belonging-to-the-scs-sts-obcs/) As apprehended by me in my letter, it appears that not more than 8[Read More…]

by 11/04/2022 Comments are Disabled India
Welcome Kerala Legislative Assembly’s resolution opposing disinvestment of the LIC

Welcome Kerala Legislative Assembly’s resolution opposing disinvestment of the LIC

 To   Shri Pinarayi Vijayan Chief Minister Kerala Dear Shri Vijayan, I wish to compliment the Kerala Legislative Assembly for unanimously passing a resolution voicing concern over the Centre’s move to sell its equity in the LIC to stock market investors and urging the Centre to retain the institution as a wholly government-owned CPSE, considering that it has played a key[Read More…]

by 17/03/2022 Comments are Disabled India
LIC IPO- Gross injustice to the smaller LIC policy holders, especially those belonging to the SCs/STs/OBCs

LIC IPO- Gross injustice to the smaller LIC policy holders, especially those belonging to the SCs/STs/OBCs

  To   Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, Earlier, I had written two letters to you (https://www.moneylife.in/article/lic-ipo-gross-underestimated-valuation-put-it-on-hold-says-eas-sarma/66146.html, https://countercurrents.org/2022/01/cpse-disinvestment-valuation-approach-flawed/) about the flawed approach to valuing the LIC for listing it in the stock markets and the injustice meted out to millions of small policy holders, with a view to grant undue benefits to a handful of speculative,[Read More…]

by 06/03/2022 Comments are Disabled India
Far reaching national interest implications of privatising DISCOMs

Far reaching national interest implications of privatising DISCOMs

  To Shri A K Bhalla Union Home Secretary   Dear Shri Bhalla, The Ministry of Home Affairs (MHA) seems to be rushing into privatising the electricity distribution systems in the Union Territories (UTs). I understand that the proposal to privatise the Chandigarh DISCOM is at an advanced stage. So is the case with the DISCOMs in Dadra & Nagar Haveli,[Read More…]

by 23/02/2022 Comments are Disabled India
 The political economy of CPSE disinvestment: Has national wealth been put on a distress sale?

 The political economy of CPSE disinvestment: Has national wealth been put on a distress sale?

2021 Disinvestment Policy: The sweeping, ill-advised disinvestment policy announced by the NDA government in December, 2021 has put most of the national wealth on a distress sale. The few oligarchs who fund the political parties and issue diktats on policy are waiting with their war chests of funds ready to buy the Central Public Sector Enterprises (CPSEs)  for a song,[Read More…]

by 16/02/2022 Comments are Disabled India
Welcoming the opposition to Centre’s likely move to privatise Singareni Collieries

Welcoming the opposition to Centre’s likely move to privatise Singareni Collieries

To Shri K Chandrasekhar Rao Chief Minister Telangana Dear Shri Chandrasekhar Rao garu, I welcome your statement expressing Telangana government’s opposition to the Centre’s move to privatise Singareni Collieries. It has certainly set the tone for a wider coalition being formed among the States to protect federalism. The NDA government has gone berserk by adopting a sweeping policy to disinvest the[Read More…]

by 08/02/2022 Comments are Disabled India
Who stands to gain if LIC bleeds?

Who stands to gain if LIC bleeds?

In her last budget speech in 2021, the Finance Minister declared the government’s disinvestment plans for the Life Insurance Corporation of India (LIC). Already, amendments to the LIC Act have been made to set in motion the LIC IPO. This has triggered panic waves across the large sections of ordinary policy holders who are anxious about their life’s savings. It[Read More…]

by 07/02/2022 Comments are Disabled India
 Should the government disinvest BEML at all? Is it not imprudent?

 Should the government disinvest BEML at all? Is it not imprudent?

To   Shri Rajnath Singh Union Defence Minister Dear Shri Rajnath Singh, I understand that the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance has processed disinvestment of 26% of the equity of the BEML, a CPSE under the administrative control of the Ministry of Defence. From what I could gather from news reports, two private companies are[Read More…]

by 03/02/2022 Comments are Disabled India
CPSE disinvestment- Imprudent to ignore R&D effort in CPSEs at the cost of self-reliance

CPSE disinvestment- Imprudent to ignore R&D effort in CPSEs at the cost of self-reliance

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I write this in continuation of my earlier letter dated 24-1-2022 (https://countercurrents.org/2022/01/cpse-disinvestment-valuation-approach-flawed/) expressing my concern at the flawed valuation methodology adopted by  the Department of Investment and Asset Management (DIPAM) for valuing the CPSEs for disinvestment. It appears that your Ministry has not cared to revisit the methodology, as evident from the fact[Read More…]

by 01/02/2022 Comments are Disabled India
CPSE disinvestment- Valuation approach flawed, Imprudent to ignore R&D effort in CPSEs at the cost of self-reliance

CPSE disinvestment- Valuation approach flawed, Imprudent to ignore R&D effort in CPSEs at the cost of self-reliance

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I refer to my letter dated January 15, 2022 on the imprudence of listing LIC in the stock market and the misleading valuation approach adopted by the government (https://www.moneylife.in/article/lic-ipo-gross-underestimated-valuation-put-it-on-hold-says-eas-sarma/66146.html). As the single largest social security provider in the country for the economically weaker sections, the social value of the LIC[Read More…]

by 24/01/2022 Comments are Disabled India
Valuation of LIC- Need for transparency

Valuation of LIC- Need for transparency

To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I understand from news reports that the LIC IPO is going to be issued shortly. Keeping in view the fact that it is the millions of policy holders of the LIC who have contributed to the Corporation’s phenomenal growth over the decades, some of us feel that relegating their interests[Read More…]

by 15/01/2022 1 comment India
Privatisation of two PSUs counter to the Prime Minister’s Atmanirbhar effort

Privatisation of two PSUs counter to the Prime Minister’s Atmanirbhar effort

 Letter to Prime Minister Privatisation of Central Electronics Lt. (CEL) and Bharat Earth Movers Ltd (BEML) runs counter to the Prime Minister’s Atmanirbhar effort To Shri Narendra D Modi Prime Minister of India Dear Shri Modi, You have launched the Atma Nirbhar idea with the intention of building self-reliance in the different sectors of the economy. It is indeed a[Read More…]

by 01/12/2021 Comments are Disabled India
The Sale of CEL is not justifiable

The Sale of CEL is not justifiable

  To Smt Nirmala Sitharaman Union Finance Minister Dear Smt Sitharaman, I understand from news reports (https://www.livemint.com/companies/news/government-clears-sale-of-central-electronics-for-rs210-crore-11638195251682.html) that the PSU, Central Electronics Ltd (CEL) is about to be sold to a private financial intermediary company, Nandal Finance & Leasing Pvt ltd for an amount of Rs 210 Crores. By any stretch of logic, the manner in which CEL is being[Read More…]

by 30/11/2021 Comments are Disabled India