By TIOL News Service

NEW DELHI, FEB 25, 2021: PRIME Minister Mr Narendra Modi on Wednesday addressed a webinar on the government's ambitious disinvestment and asset monetisation roadmap laid out in Budget 2021-22 and said they will push ahead with privatisation to focus on the welfare of the people.

"The government has no business to be in business," Mr Modi emphasised at the webinar organised by the Department of Investment and Public Asset Management (DIPAM).

He announced the motto of the government is to "monetise and modernise" the assets of the country to take India back to the high growth trajectory with the help of the private sector.

Explaining the different times and needs of the country from when the Public Sector Units (PSUs) were first set-up, the Prime Minister said the reforms aim to properly utilise taxpayers' money so loss-making PSUs do not continue to burden the economy.

"I can understand the need of any public sector enterprise if it is fulfilling the needs of any sector and of any strategic importance. It is the responsibility of the government to supply support country's enterprise and business," said the PM.

He added, "We have made it clear in the new public sector enterprise policy that government will have limited role in only four strategic sectors and all other public sector units can be privatised."

Mr Modi said that the focus of the government should be on the welfare of the people and on developmental projects and noted government officials working with several limitations are unable to take commercial decisions. He insisted that the push to privatisation would improve the standard of living and reduce governmental interference in people's lives.

"Money from asset monetisation and privatisation will be used for social welfare schemes," he said. "Every decision on privatisation and monetisation will help in empowering Indians."

The Prime Minister also talked about the National Asset Monetisation Pipeline announced in the budget to held in the effective utilisation of government's assets. The new policy will take a medium-term strategic approach and help in selection of individual companies, rather that setting an annual disinvestment target.

"There are many under-utilised and unutilised government assets. We plan to monetise 100 government-owned assets. There is an opportunity to invest Rs. 2.5 lakh crore in these assets which are up for monetisation," said Mr Modi

"When government monetises, that space is filled by the private sector, along with investment and best global practices," he added, noting the strong partnership between the private players and the Centre.

The government has said it will privatise all its assets and maintain only a bare minimum presence in the four strategic sectors of atomic energy, space and defence; transport and telecommunications; power, petroleum, coal and other minerals; and banking, insurance and financial services.