The monetization scheme will pave the way for monopolies in the country

- The policy of disinvestment and privatization is constantly changing

- NMP will create a monopoly in railways, solar power, airports, telecom, natural gas pipelines etc.

- Once monetized, public sector undertakings will disappear as a means of stabilizing prices in the market.

Naryu has been caught lying. For the last seven years, Narendra Modi and his ministers have been criticizing his previous Congress and other governments for not doing anything in 70 years. (Previous governments include Vajpayee's government). On August 6, 2021, the Finance Minister announced a proposed list of assets from which he plans to raise money. However, they forgot to mention that these assets have been built or have been built in the last 20 years.

The disclosed list includes the following assets.

- 200 km Rhodes

-2 CKT KMS Power Transmission Assets,

-2000 Mavo Hydel and Solar Power Assets,

-412 km Natural gas pipelines,

-30 km Petroleum Products Pipeline,

-Warehousing assets with a capacity of 210,000,000 MT,

-200 railway stations, 4 goods shades,

-Konkan Railway and Dedicated Freight Corridor,

-2,2,000 km Fiber and 1912 towers

- 21 air ports and 21 projects in 3 major ports and

-2 National Stadium.

With a single stroke of the pen, Modi and his finance minister have tried to reduce the country's public sector assets to zero. They are estimating that the government will be able to earn Rs 1,50,000 crore a year from these assets on rent and on paper these assets will remain with the government. He also boasted that after a certain period of time these depreciated assets will be returned to the government. This is an acronym for Government's National Monetization Pipeline (NMP).

Purpose and standards disappear

The policy of disinvestment and privatization is constantly changing. Every government after 191 has tried to give a good op to this policy. The only purpose behind privatization has been and is to raise money, increase capital investment, implement modern technology, expand the market for products, create jobs, etc.

Special standards were set by previous governments for the selection of privatization of government units. In these standards-

1. Not to privatize government undertakings in strategic sectors such as nuclear energy, defense production, railways, certain ports.

. Persistently loss-making ventures can be privatized.

. Privatization of a public sector undertaking whose products have a negligible presence in the market.

. Not to privatize a monopoly venture.

These standards of previous governments have been thrown out the window but new standards have not been announced in their place. Surprisingly, the railways have been removed from the list of strategic areas. It is classified as a non-core asset. Even in developed countries like UK, France, Italy and Germany, railways are maintained in the public sector.

Departure to monopoly

Concerns are being raised that the NMP will create a monopoly on railways, solar power, airports, telecom, natural gas pipelines, etc. India is relatively new in building an economy led by private participation in the industry and services sector. America's experience can tell us a lot in this regard. The US Congress and the government are currently considering legislation on how to reduce the monopoly and unfair trade activities of some companies in their country. China is taking action against some of its major technology companies. Against this we are going in the opposite direction through NMP.

In addition to the absence of standards for selection of public sector undertakings covered under the NMP, the purpose of monetization has also not been clarified. Considering the annual rental income of Rs 1,50,000 crore on these assets, it is yet to be revealed how much is currently earned through these assets. Thus, the actual income or (loss) through the proposed monetization of assets will be the difference between the current income on it and the proposed income of Rs 1,50,000 crore. There is also no clarity on employment and reserves. Will the existing employment in the monetized units be sustained or increased? No clarification has been given as to whether the reservation for SC, ST and OBC will be maintained or abolished.

There will be no means of stabilizing prices

The biggest loss will be in the form of a reduction in prices. Once monetized, public sector undertakings will disappear as a means of stabilizing prices in the market. Even if there are two to three players in the market, price fixing or factionalism takes place. This is true of the so-called competitive cement market. I fear that prices will rise in some areas.

Seeing the way the Modi government is working, this process smells of conspiracy. No draft letter has been released on NMP. No discussions were held with stakeholders, especially employees and trade unions. This has not been discussed in Parliament and will not be. This policy has been secretly drafted and suddenly made public. It is only natural that private sector leaders should welcome this policy. Be ready to welcome the arrival of monopolies in the country again.