The AP government, which says it will block the privatization of Visakhapatnam steel, has taken another step to fully co-operate with the privatization program being implemented by the Centre. In states where non-BJP parties are in power in the country, it can be said that such a step has been taken only by Andhra Pradesh.
INCAP established in Andhra Pradesh
The Centre has further expedited the disinvestment program in companies and institutions where illiquid assets have accumulated due to losses. To this end, it has issued guidelines to the states. A nodal agency has already been set up in AP as part of efforts to further expedite the disinvestment of these investments. The government has already issued orders appointing INCAP as the nodal agency in the AP to oversee transactions such as fund-raising and investment withdrawals in various ways from national assets and institutions.
The target is Rs 1.75 lakh crore.
KV Subramaniam, the Chief Financial Advisor to the central government, has already announced that the Centre is targeting to raise Rs 1.75 lakh crore for the 2021-22 financial year through privatization of public sector undertakings. It has set a target of Rs 2.10 lakh crore for the current fiscal. The centre is all set to raise Rs 1 lakh crore through the proposed LIC IPO to achieve the target in the next financial year and another Rs 75,000 crore through BPCL privatization and LIC listing.
Guidelines have been issued
The NITI Aayog has already issued guidelines on precautions to be taken in case of disinvestment and peacekeeping. As part of this, the centre has set up the National Monetization Pipeline Project (NMP) to raise funds through disinvestment and sale of assets in public sector enterprises ready for privatization across the country. As a part of it, AP INCAP was established as the nodal agency in the state. The nodal agency was set up in the wake of the Centre’s suggestion that only NMPs across the country should take steps to withdraw investments, convert assets into cash and raise funds. The guidelines were issued to the states on March 9.
Including these
Discussions are underway on the withdrawal of investments as well as the closure of ailing companies and the cashing list of their assets. The centre has directed the state government to identify assets such as state roads, expressways, transmission towers, discoms, power generation companies, minor ports, state airports, waterways, jetties, logistics parks, bus terminals, sports stadiums and warehouses. In addition, it seems that some instructions have been issued regarding the list of companies in the states. If the same happens, there is talk of including state-owned companies like RTC in the list. Clarity is yet to come on this; however, it is noteworthy that these developments took place in AP at a time when there was a one-sided movement against the privatization of the Visakhapatnam Steel Plant.
