Strategic divestment: Anurag Thakur allays concerns on loss of job, PF and other benefits

MoS Finance Anurag Thakur (File Image)

Union Minister of State for Finance Anurag Singh Thakur sought to reassure of the Centre’s “clear and transparent" disinvestment policy during Question Hour in the Rajya Sabha on March 15.

He said concerns related to job loss and other facilities will be taken care of when a central public sector company (CPSE), working in a strategic sector, is divested.

The four sectors of banking, insurance and financial services; power, petroleum, coal and other minerals; atomic energy, space and defence; and transport and telecommunications would be strategic sectors. The rest will be non-strategic sectors, he said.

"If CPSEs are given for privatisation or for strategic sale, in the sale purchase agreement to be entered, it will be decided that there won't be job loss of people and all these facilities are provided," Thakur said.

On concerns with regards to jobs losses in India’s largest insurer LIC, Thakur noted that LIC is not being privatised, but has only planned an initial public offering (IPO).

Responding to questions raised about the IPO, the Times of India quoted Thakur: “We are just bringing an IPO. The extent of share dilution is not yet decided and no one is losing jobs in LIC because of the proposed IPO.”

The minister further said he personally believes that the Centre’s divestment policy clearly states that the divestment will bring investment, technology infusion, job opportunities.

"Overall, there will be more job opportunities and not a reduction in employment," he added.

The minister was responding to Samajwadi Party leader Vishambhar Prasad Nishad's query on reservations and other facilities like provident fund in PSUs which would be privatised.

Nishad also asked a supplementary question on the number of PSUs that the government has formed since 2014 and created job opportunities for people.

The Union minister reiterated that the divestment policy is clear and transparent.

"In strategic sectors, at least one company we keep to run in the interest of the country. If there are many companies in a particular sector, then there is no need for the government to be in that business. The government has no business to be in the business," he added.

For the 2021-22 fiscal, the government has kept the disinvestment target at Rs 1.75 lakh crore. Out of which, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions and Rs 75,000 crore would come as CPSE disinvestment receipts.

(With inputs from PTI)