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Category Archives: Disinvestment

A White Paper on the state PSU and urgent action for revival required.

16 Thursday Jun 2016

Posted by VAN NAMBOODIRI in Disinvestment, PSU

≈ 1 Comment

Tags

Central, PSUs, revival, State

During the UDF government in Kerala, the state PSUs were purposely made ineffective and weakened for closure and privatisation. The new LDF government and the Chief Minister has declared that the state PSUs will be revived and strengthened.

It is necessary for this purpose to prepare a White Paper on the present situation of all the state PSUs continued with action plan to rejuvenate them. Opinions/Suggestions from the trade unions, experts, public and the workers of these PSUs may be taken, before finalisaion of the programme.

The people of the country have to understand the difference between pro-PSU policy of the LDF government and the anti-PSU policy of the NDA government.

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CITU opposes strategic sale of PSUs

15 Wednesday Jun 2016

Posted by VAN NAMBOODIRI in CITU, Disinvestment, PSU

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CITU, opposition, Sale of PSUs

CITU Condemns Retrograde Move to Sell Out
Public Sector Companies With Huge Asset

New Delhi, June 15: The Centre of Indian Trade Unions condemns the retrograde move by the Govt of India to fast track selling out the Central Public Sector Enterprises with its huge asset base to private hands. With this dubious intent, the NITI Ayog has been made to submit a list of CPSEs to Prime Minister’s office recommending fast track sale of those companies on various pretext.

It is a matter of alarm that in order to facilitate sale-out of the CPSEs, the NITI Ayog has been made to recommend further capital investment from national exchequer in some of those CPSEs like Air India, FACT , Chennai Petroleum, Madras Fertilisers etc, not just to revamp their operational efficiency, but to make them saleable to private hands.

The history of such strategic sale of around nine CPSEs, like IPCL, BALCO etc during the previous NDA regime reveals that each of those CPSEs with their huge asset-base were sold at prices less than one fourth of their real asset value at then market prices, that too, virtually to a single bidder, as observed by CAG at that material time. The Narendra Modi Govt at present has become more desperate in selling out huge national assets in the chosen CPSEs to its private corporate constituency, both domestic and foreign, at a throw away price, much to the detriment of national interest. Two years’ BJP regime could not create nor facilitate any new establishments for productive employment generation in any significant scale except making loud noises through media-hype and creating statistical illusions on GDP growth; on the other hand the Govt is desperately moving ahead for mega-sale of huge national assets through sale of CPSEs.

The NITI Ayog while making such disastrous recommendations along with the list of CPSEs for sale, went to the extent of arguing that “non-priority sector CPSE, once revived, could always be considered for strategic disinvestment”. Could devility go further ? Can Airlines, petroleum companies, fertilizer producing units be construed as “non-priority sector” in our country by any stretch of imagination ? But a Govt in a hurry to establish its corporate loyalty and also so called “reforms-credential” can certainly go to such devilish extent, totally unconcerned of national interest.

Such retrograde move of frittering away national assets in country’s CPSEs must be combated and resisted by the working class movement of the country. The united platform of country’s trade union movement comprising almost all the trade unions and federations of the country has already decided to go in for countrywide general strike on 2nd September 2016 demanding, inter alia, the withdrawal of such disastrous move of sale-out of national assets and CPSEs, in order to defend the working people as well as to defend the national economy.

The CITU while calling upon the working people and trade unions in the country irrespective of affiliations to prepare for staging the countrywide General Strike on 2nd September 2016 in a massive way, also calls for organizing united protest in workplaces and industrial centres against such retrograde move of privatization by the BJP Govt.

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Why we oppose VRS/CRS in BSNL?

26 Thursday May 2016

Posted by VAN NAMBOODIRI in BSNL, BSNLEU, Disinvestment, Forum, PSU, SAVE BSNL CAMPAIGN

≈ 2 Comments

Tags

BSNL, Forum, VRS

The press statement of Shri Anupam Shrivastava, CMD BSNL,  that Voluntary Retirement Scheme (VRS) is required in BSNL to reduce the loss has brought the issue of VRS/CRS once again as a matter of intense discussion among the workers. A few comrades have asked why we could not accept VRS/CRS. The government and management had decided to impose VRS/CRS thrice in the past, but had to backtrack before the strong opposition from the unions/associations. But since many new entrants are there who were not part of the earlier struggle, it will be relevant to point out why the workers and their unions are against the imposition of VRS/CRS.

The following points are very relevant in this matter.

  1. Corporatisation is the first step towards privatisation. Since a government department can not be directly made in to a private entity, the telecom services, a government department, was converted in to a corporation, despite strong opposition from the workers and their unions. ‘Business is not the business of the government’ is the policy of both NDA and UPA governments. Telecom Services is one of the biggest business with lakhs of crores of rupees investment and much more profit. Private companies are there in the field, but they want either BSNL and MTNL should be privatised or closed down so that they can reap much more profit. To justify privatisation or closure, BSNL has to be made loss making and inefficient, so that the public will not oppose much. VRS is a tool for the same.
  2. All decisions taken by the government and management since corporatisation were in this direction. It is thus, that BSNL which was having a profit of Rs. 40,000 crore annually and a profit of Rs. 10,000 – 12,000 crore was made in to a loss making concern reducing its revenue to Rs. 26,000- 27,000 crore and a loss of about Rs.8,000 crore. Towards this down fall, the government took over the balance of about Rs. 40,000 crore with the BSNL citing various reasons, stopped procurement of equipment required for development, did not recruit to compensate the retiring employees etc.
  3. Disinvestment of shares of the company is one method through which it can be privatised, as was done in the case of Videsh Sanchar Nigam Limited, which was handed over to Tata. More than 46% of shares of MTNL are already sold and 5% more will mean that the government will lose control of the PSU. That is why, BSNL Unions under the leadership of Joint Action Committee/Joint Forum/Forum orgnaised mighty struggles and defeated the decisions of the government for disinvestment. BSNL is one of the few PSUs, whose share has not been sold at all.
  4. In the same way, VRS/CRS is another way for facilitating privatisation. After privatisation of VSNL, BALCO, ITDC Hotels etc., the new management started retrenching employees in large numbers starting with women workers and SC/ST etc. There was strong opposition against this from the workers. Hence the private lobby is putting pressure on the government that before privatisation itself, the number of workers should be reduced to the minimum so that, the take over will be easy. Instead of permanent workers, these private companies are employing contract workers, daily wagers and apprentices / trainees, thus maximising exploitation. This is another reason why the government wants VRS/CRS in the PSUs.
  5. There were about 3,50,000 employees at the time of formation of BSNL in 2000. Now it has been reduced to about 2,00,000, a reduction of 1.5 lakh workers. About 10,000 – 15,000 workers are retiring every year with only minimum recruitment. Who will do the work? The plan is to employ contract workers, apprentices etc.
  6. The claim of the management that almost 50% of the revenue is spent on salary bill is nothing short of confusing the public. For the last 4-5 years, there has been no increase in the total salary bill, which is around Rs. 14,000 crore. The % has increased only due to the reduction in the revenue from Rs. 40,000 crore to Rs. 26,000 -27,000 crore. If the revenue has increased to Rs. 50,000 – 60,000 crore, the % of salary bill be much reduced. Management and the government are fully responsible for the loss.
  7. Reduction of work force, without new recruitment will adversely affect the services. Wherever VRS has been implemented, as in the case of MTNL, this is the case. The Banks found out that after VRS, their services can not be run and immediately recruited almost double the number of employees who were sent out on VRS.
  8. Another argument is that the workers who opt for VRS will be benefitted by the compensation given. Of course a few lakhs of rupees extra will be received as per the scheme. But if you compare the pension of the employee who took VRS and the person who retires after superannuation, there will be a big difference with the latter getting much more pension since his salary will be higher. This loss in pension will continue through out the life of the person who takes VRS.
  9. Women workers are pressurised by their husband, children etc. to take VRS, since a good amount of money will be immediately available. But the fact is that a working women gets more respect in the society, they have a support from their co-workers at any time and they are also self-sufficient. Work for some more years and  a better pension will be a great help in their old age.
  10. VRS in fact is CRS – Compulsory Retirement Scheme. The question of VRS always comes just before another wage revision. After wage revision, the salary will increase, arrears have to be given etc. This will increase the pension also. Hence both the government and the management wants that maximum number of employees are sent out on VRS/CRS so that they need not pay the increased wages and pension. They think that they can confuse, mislead and blackmail the workers to opt for VRS.
  11. According to the management for implementing VRS in BSNL, about Rs. 18,000 crore is required. From where it is going to come? If that amount is there, it can be utilised for procuring equipment, modernising and giving a better service to the people.
  12. Another aim of the Government and management is to see that the workforce is reduced to such an extent that the struggle of the workers can be weakened and privatisation can take place easily as in the case of VSNL. The government is irritated that it could not implement either VRS or disinvestment in BSNL due to the presence of mighty unions.

In such a situation, there is no compromise on VRS and it has to be strongly fought and defeated as earlier. The Forum of BSNL Unions/Associations have to immediately condemn the move for VRS and ensure that the nefarious game of the Govt.and management is utterly defeated.

 

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Oppose privatisation of IDBI Bank

02 Saturday Apr 2016

Posted by VAN NAMBOODIRI in Disinvestment, PSU

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IDBI, privatisation

The fully unjustified move of the central government to privatise the IDBI Bank has to be opposed and defeated. The employees of the Bank had gone on 4 days full strike from 28th March protesting against the move of the government. The plea of the government that there is NPA (bad loan) of more than Rs.19,000 crore is no justification for the same. It is only due to the political intervention and policy of the government that such NPA is happening as in other banks.

Privatisation of IDBI will be the first step in privatising the other PSU Banks. Oppose and defeat this game of the BJP Government, which is intended to help the private banks and corporates.

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Employees to strike on 28 March against privatisation of IDBI Bank

17 Thursday Mar 2016

Posted by VAN NAMBOODIRI in Disinvestment, General

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IDBI Bank, privatisation, strike

The 32,000 odd employees of the IDBI Bank will go on a one day strike on 28th March 2016 against government move to privatise the bank. The privatisation move is part of the government’s anti-PSU policy. The government has recently started an anti-PSU Bank move.

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Supreme Court rejects further disinvestment of Hindustan Zinc Ltd.

20 Wednesday Jan 2016

Posted by VAN NAMBOODIRI in Disinvestment, PSU

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Disinvestment, Hindustan Zinc

Supreme Court rejects further disinvestment of Hindustan Zinc Ltd.

In an important judgment, the Supreme Court has rejected the proposal of the government to dilute its 29% shares in Hindustan Zinc Limited stating that a Parliament decision is required in the matter since the corporation was formed by an act of Parliament.  The apex court also asked the government, why it is in a hurry to sell the government assets. When the advocate for Vedanta, the company which has the majority shares with it, pointed out that when they took over the company it was loss-making, but now it is profitable because of its present management, the SC commented that why not the government also gets a part of the profit because of its shares. SC also asked the Advocate General “What is the hurry to hand over valuable assets worth lakhs of crores? Without permission of the court you can’t go for disinvestment”. As such the disinvestment of residual stake  of the company has been stopped for the present.

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Government to hand over small airports to private

06 Wednesday Jan 2016

Posted by VAN NAMBOODIRI in Disinvestment, General

≈ 1 Comment

Tags

Airport privatisation

Finance Minister Arun Jaitely has stated in the meeting of the India Infrastructure Finance Company(IIFCL) that the government is proposing to hand over management of small airports to the private sector for ‘improving efficiency.’ This is nothing but privatisation of airports.

The NDA government is handing over the government properties to the private sector in a big way. And the private companies will increase all the rates in the name of modernisation. The common people are the sufferers.

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Govt.to invest Rs. 8.5 Lakhs Crore for Indian Railways – MoS Finance

03 Thursday Sep 2015

Posted by VAN NAMBOODIRI in Disinvestment, General, Neo-liberal policy

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Investment in Railways, PPP

According to the Minister of State for Finance, Jayant Sinha, the government will invest Rs. 8.5 lakh crore for the Railway Sector. The amount is being invested to change the face of the sector, the MoS stated.

The reality is something different. The government has already decided for private participation in the Railways. These Rs. 8.5 lakhs will be utilised to ‘make it easy’ for the corporates to run the railways. It is to be remembered here that the government (Airport Authority) spent thousands of crore of rupees for the modernisation  of Chennai and Kolkata Airports. Immediately afterwards, the government decided for private participation of these two profitable airports with about Rs.200 – 300 crore of investment from corporates. It was only due to the strong opposition from the Airport employees as also the public that the government was compelled to defer it.

In Railways also, the investment will be from the Government and the profit will go to the private. Why the government could not think about the investment before any private participation was thought of. It is clear. PPP means, funds from the Public and the Profit for the corporates! Of course, Modi Government has to repay the huge election funds got from the corporates and big business.

 

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Disinvestment in Indian Oil Corporation (IOC)

21 Friday Aug 2015

Posted by VAN NAMBOODIRI in Disinvestment, PSU

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IOC, share sale.

10% share of Indian Oil Corporation will be sold on 24th August. At present, the government holds 68.57%. Now it will be reduced to 63.57%.

Continued selling of Family Silver by the Manager.

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Disinvestment – Now it is Dredging Corporation

20 Thursday Aug 2015

Posted by VAN NAMBOODIRI in Disinvestment

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Disinvestment, Dredging Corporation

The government has decided to disinvest 5% shares of the Dredging Corporation. The selling spree continues.

Selling family silver has become the most important function of the Modi government. The government is the custodian of the nations’s assets and not their owner.

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