Modi puts Rs2.5T up for grabs to woo foreign investors to India

Dubai - Government pressing ahead with ambitious plan to privatise 100 state assets in multiple key economic sectors

The Indian government has “no business” to be in business, Indian Prime Minister Narendra Modi declared late on Wednesday as he opened the door wider for foreign investors by pressing ahead with an ambitious plan to privatise 100 state assets in the oil, gas, ports, airports and power sectors.

Signalling that there will not be any going back from his government’s programme for disinvestment and privatisation of public sector undertakings, Modi offered investors worldwide investment opportunities worth ₹2.5 trillion.

Addressing a webinar on privatisation by the Department of Investment and Public Asset Management, Modi declared “we are going ahead with the mantra of monetise and modernise”.

“It is the government’s duty to support enterprises and businesses. But it is not essential that it should own and run enterprises.”

“The government has no business to be in business. When the government monetises, that space is filled by the private sector of the country. The private sector brings investment and best global practices with them,” he pointed out.

Public sector enterprises are loss-making and several of them need the support of public money and that they should not be run because they were started many years ago and were someone’s pet project, he said. Modi said that the government is working on ₹111 trillion national infrastructure pipeline fund. Outlining the government focus going forward, he said the budget has given a clear roadmap to take India to a high growth trajectory.

Assuring investors that it is the government’s responsibility to give full support to commercial enterprises in the country, he said it is no longer possible for the government itself to remain their owners. “That is why I say that the government has no business to be in business.”

To ensure that government enterprises are offered for private investment in an orderly, rule-based and transparent manner, the Modi government has announced a National Asset Monetisation Pipeline. “With the policy of monetise and modernise, we can increase the efficiency of the entire economy,” Modi added.

He said many foreign investors are eager to open their first office in India. To easily facilitate this, Modi offered assistance from the International Financial Centre, known as Gift City in Ahmedabad in Gujarat state. “The centre will be governed under an internationally comparable regulatory framework. This can be a great base for you to work.”

He said the money raised through privatisation will be spent on welfare programmes such as building houses for the poor, laying roads in villages, opening schools, and bringing clean drinking water to those who have no access to such facilities.

— issacjohn@khaleejtimes.com

• India