Rising Loss Making PSUs worrying Modi govt.

9 in Maharashtra, one in Goa

Harish Gupta, National Editor, Lokmat Group

New Delhi, Oct 10

The government is determined to cut losses and resort to a massive divestment program. One of the main reasons for ruthlessly divesting OPSUs is their mounting losses.

According to a latest analysis submitted to the government by the ministry to the PMO, of the 256 operating PSUs as on March 31, 2020, the loss-making PSUs stood at 84. The number rose from 72 in 2017-18.

Even the losses of these PSUs are mounting, year after year. If the losses were Rs 18599 crores in 2017-18, the amount went up to Rs 28404 crores in 2018-19 and further went up to Rs 30131 crores. Surprisingly, despite the best efforts of the government, there are as many as 30 PSUs which are continuously making losses.

Between August 2013 and March 2020, the government approved the closure of 21 loss-making CPSEs including HMT Watches Ltd, Indian Drugs and Pharmaceuticals Ltd and Hindustan Fluorocarbons Ltd. The Department of Public Asset Management (DIPAM) has failed to find strategic investors for Scooters India Ltd. and Bharat Pumps and Compressors Ltd even after inviting expressions of interest. Alternatively, the government is selling these sick as well as profit-making PSUs too. There are many under litigation too.

Of the 84 sick companies, nine are in Maharashtra which includes Western Coalfield, Bharat Petro Resources, HOC, Hindustan antibiotic, Maharashtra antibiotics, Aurangabad Textiles & Apparel, NDFC, Hotel Corporations, and Indian Ports Global.

Goa's Goa Antibiotics & Pharma Ltd is also sick which made a loss of Rs 543 lakhs in 2019-20

It is not the government only shutting down PSUs. On the contrary, the government has also cleared the path for the revival of eight CPSEs including BSNL, MTNL, Brahmaputra Valley Fertilizer Corp. Ltd, Hindustan Steelwork Construction Ltd, Konkan Railway Corp. Ltd, and revive four closed fertilizer plants at a massive investment of Rs one lakh crores.

                                             Loss Making PSUs

                                      2017-18                   2018-19                  2019-20

Number                                 72                             69                           84    

Amount in Crs                    18599                     28404                     30131

 

 

Prashant Kishore now takes a dig at Congress, says GOP’ problems deep-rooted

Harish Gupta, National Editor, Lokmat Group
New Delhi, Oct 8

In a terse message for the Congress which is struggling to revive itself amid growing dissidence and onslaught by the ruling BJP, poll strategist Prashant Kishor joined the ranks saying, “There are no quick-fix solutions to the deep-rooted problems.”

Kishore went on to say that those looking for a quick revival of the grand old party-led opposition following the Lakhimpur Kheri incident are in for a big disappointment as there are no quick fix solutions to the "deep-rooted problems" of the party.

The crispy tweet sets at rest all speculations of his formally joining the Congress as general secretary incharge of its poll strategy.

Kishore had held long meetings with the three Gandhis since July including Congress’ interim president Sonia Gandhi and had given hope that he may now join the party and chalk out its poll strategy.

But he said, "Unfortunately there are no quick fix solutions to the deep-rooted problems and structural weakness of the GOP," he said.

Former Union minister and senior Congress leader M Veerappa Moily had gone on record last month voiced strong support for Kishor's induction into the Congress and said those opposing his entry into the party were "anti-reform". Kishor's tweet is being viewed by many as an indication that things may not be working out between him and the party leadership.

It may be mentioned that party general secretary Priyanka Gandhi Vadra was in the fore-front of launching a blistering attack on the UP Government after four farmers were mowed down by an SUV in Lakhimpur Kheri. These incidents raised hopes of revival of the GOP in UP and elsewhere.

Lokmat had reported on September 30 that Congress-Kishore talks have failed and he may not join the party.

Varun Gandhi three others dropped from BJP Executive

Harish Gupta, National Editor, Lokmat Group

New Delhi, Oct 7

The BJP high command gave a tough message to those crossing the “Laxman Rekha” by dropping them from the national executive of the party today.

In the mega 309-member mega National Executive re-constituted today, almost two years after J P Nadda took over as president, three sitting MPs dropped.

Former Union Minister Ms Maneka Gandhi and Varun Gandhi, both Lok Sabha MPs, Dr Subramanian Swamy and ex-minister Birender Singh removed.

Party's official sources explained this was a routine exercise when a new president takes over.

Varun Gandhi had lately been indulging in a flurry of tweets by condemning events of Lakhimpur Kheri and was the only BJP leader to take flag the issue, in which the son of Minister of State for Home has been accused of murder.

Many felt that Varun Gandhi, by choosing to go public had made his intentions clear to the high command that he was ready to face the consequences including expulsion. But the Pilibhit MP's stance is clearly a sign of revolt at a time when the BJP is working hard to mobilise support before the Assembly polls.

On Tuesday, Varun Gandhi had tweeted a rather grainy video of a black SUV ploughing through a group of peaceful protesters from behind forcing the high command to act not only against him but also his mother who is a seven time Lok Sabha MP. Calling it "murder", Varun Gandhi said the video was enough to "shake the soul".

Swamy has taken on senior BJP leaders and the central government on multiple occasions. On Tuesday, he said that increasing petrol and diesel prices constitute a “tragedy for honest people of India”.

There are 80 members in the National Executive and 50 special invitees while 179 permanent invitees.

Congress dissidents in disarray, mending fences

Sonia not to summon “Physical CWC” meeting

by Harish Gupta, National Editor, Lokmat Group

New Delhi, Oct 5

Irrespective of rhetoric by the G-23 dissidents against the leadership, the party high command is unruffled and moving ahead at its own pace. In fact, the way Captain Amarinder Singh was sent packing in Punjab, has made some of the dissidents mend fences.

Haryana's Congress stalwart Bhupinder Singh Hooda may be a signatory of the G-23 letter to Sonia Gandhi and at times airing his views. But his son and Rajya Sabha MP, Deepender Singh Hooda is standing with the Gandhis like a rock. He even got detained when he went along with Priyanka Gandhi Vadra to Lakhimpur Kheri (UP) to protest against the atrocities on farmers.

Anand Sharma, deputy leader of the Congress in Rajya Sabha has been maintaining studied silence for weeks together and did not join issue with Kapil Sibal who fired a huge salvo against the leadership a couple of days ago. In fact, none of the other senior leaders joined ranks with him, be it; Prithviraj Chavan, Mukul Wasnik, Shashi Tharoor and others. Even Manish Tewari was very guarded.

Some of the signatories like Jitin Prasada have already joined the BJP.

Ghulam Nabi Azad may have demanded summoning of the Congress Working Committee meeting, but Sonia Gandhi is unlikely to oblige.

A senior Congress leader told Lokmat that Sonia Gandhi won't commit the cardinal mistake that late Sitaram Kesari did by calling a CWC meeting and faced his own removal. Though Kesari was unwilling to call a meeting of the CWC in 1998 but he was persuaded by seniors like Dr Manmohan Singh that everything would be normal. In a virtual meeting, the command and control is operated through a remote button and members can speak only when authorized. Therefore, there is no question of any “physical meeting”, said the source.

500+ political parties registered in two years

EC seeks Power to re-register, Money laundering suspected

Harish Gupta, National Editor, Lokmat Group

New Delhi, Oct 4

The Election Commission is extremely worried over the mushrooming of political parties as more than 500 such outfits have sprung up during the past two years.

The EC has written to the government to seek powers to deregister them. What has made EC worried is that these have cropped up after the 2019-Lok Sabha polls and they came up between April 2019 and August 2021. In addition, more than 100 new political outfits have applied for registration in the past two months alone.

These are registered political parties but not recognized parties. More than 2700 parties are registered and most of them are defunct. There are eight recognized national and over 50 state parties. Others are registered parties but unrecognized and their number is rising rapidly.

The EC cannot refuse to register political parties. But it wants to de-register such parties who have no activity worth a salt. A senior EC official said it had come to the notice of the government and the Commission that some of the parties were used for money laundering as they are exempted from income tax. At times, large parties use the infrastructure of these registered parties during campaigning.

It is in this background that the EC has sought power to deregister defunct political parties as they enjoy tax exemption on donations. They can take donations below Rs 2000 in cash and submit a report to the ECI. Though rules have been tightened lately. The Act exempts parties’ income from house property, voluntary contributions, other sources and capital gains. The Commission has the power to delist parties under Article 324 of the Constitution but it cannot deregister dormant parties. From February 2016 to December 2016, the ECI had delisted 255 registered unrecognised political parties.