Monetization Controversy: Crown Jewels or Crown Eyesores
The status of few PSU assets and Defense Lands in Hyderabad is reviewed to provide a perspective of whether they should be treated as "Crown Jewels" or most aptly "Crown Eyesores".
IDPL was commissioned in 1967 in Hyderabad on 891 acres of prime land (current rate of minimum Rs.1,50,000.00 per sq. yd) - Rs.76 crores per acre. Just 2 kms. away from the main plant, there is a well developed township with 858 flats virtually in dilapidated condition unfit for human inhabitation.
The plant had formulation facilities also, but at present the plant operations are totally stopped since 1996(Bulk) and 2003 (Formulations). Only Effluent Treatment Plant, (ETP) is being operated for treating effluents of other industries.
The plant is virtually defunct now - real eyesore on the NH Highway to Mumbai.
Just for the sake of justification, a "National Institute of Pharmaceutical Education & Research (NIPER)"has been set-up on 19th October, 2007 offering training program in all disciplines relating to pharmacy to Graduate / Post Graduate students, which the medical infrastructure facilities - both public and private educational institutions - can easily provide.
Next, the campus of Hindustan Cables factory in Hyderabad at Cherlapally, set up in 1974, a sick PSU, covers 324 acres. Also, the campus of HMT Bearings Ltd at Maula Ali IDA, covers 29.33.
One must also add lands and Old Grant Bungalows in prime urban areas under the control of the Ministry of Defense, as eyesores in various 62 Cantonments - most of them in megacities like Delhi, Kolkata, Mumbai, Chennai, Hyderabad, Bangalore, Lucknow, Pune and so on. The real estate current going rates in some of them may be over Rs.100/- per acre.
For example, the area of Military Dairy Farm in Secunderabad extends over 1000 acres. And, there are around 86 Old Grant Bungalows (1-5 acres and more space in each OBG). Most of the OGBs are using their open spaces for commercial purpose at very cheap rates - per square meter is between Rs 4 and Rs 10. Some are using their open spaces as function halls, furniture and even car showrooms - mostly large profit making concerns.
ironic but true, yet the Ministry of Defense seeks additional land for meeting the military forces additional requirements instead of re-appropriating them for internal usage.
As per the data in public domain, there were 348 CPSUs as on March 31, 2019. As of 23 October 2019, there are 10 Maharatnas, 14 Navratnas and 74 Miniratnas.
Out of which 249 were operational with quite a few incurring heavy losses on annual basis like BSNL total loss of Rs 18,380 crores in three years, Air India total loss of Rs 13,196 crores since 2016, Mahanagar Telephone Nigam ltd (MTNL) loss of Rs 8,674.7 crores in three years, Hindustan Photo Films Manufacturing Company (HPF) loss of Rs 8,287 crores, and others to include India Infrastructure Finance Company (IIFCL), Western Coalfields Limited (WCL), Bharat Coking Coal Ltd (BCCL), Eastern Coal Fields (ECL), Hindustan Cables Limited (HCL), etc.
13 of loss-making CPSEs due to obsolete plants, machinery and technologies, heavy interest burden, resource crunch, low capacity utilization, low productivity, surplus manpower, high input cost, non-remunerative prices etc are under closure or liquidation.
Instead of using the assets of sick units liquidated, there are 86 under construction in green field locations. What a profligacy of tax payers money?
Who brought the disinvestment policy to India? The process of monetization was started by Dr. Manmohan Singh when he was the Finance Minister during Narasimha Rao's time who stated in the Parliament "Maximum government, less governance! The job of the government is not to do business, the job of the government is to give governance! Such an environment is to be given, so that the citizens of the country can do all these things!" Dr. Manmohan Singh initiated the "Privatization of Airports" first, and Delhi's "Indira Gandhi Airport" was given to GMR Group to run it commercially! Also, he privatized Banks like IDCI to IDBI, Axis and HDFC Banks.
Dr. Manmohan Singh sold 26 government companies in 5 years in 2009-14 as part of the disinvestment plan to include: HPC Ltd.; NTPC; REC - Rural Electrification Corporation; NMDC - National Mineral Development Corporation; SJVN - Satluj Jal Vidyut Nigam Limited; EIL - Engineers India Limited; CIL - Coal India Limited; PGCIL - Power Grid Corporation of India; MOIL - Manganese Ore India Ltd.; SCI - Shipping Corporation of India; PFC - Power Finance Corporation; ONGC - Oil & Natural Gas Corporation; SAIL - Steel Authority of India Ltd.; NALCO - National Aluminum Company Limited; RCF - National Chemicals and Fertilizers; NHPC - National Hydro-Electric Power Corporation; BHEL - Bharat Heavy Electricals Limited; CPSE - CPSE-Exchange Traded Fund; PGCI - Power Grid Corp of India Limited; NFL - National Fertilizers Ltd.; MMTC - Metals and Minerals Trading Corporation; HCL - Hindustan Copper Limited; ITDC - Tourism Development Corporation of India; STC - State Trading Corporation; and NLC - Neyveli Lignite Corporation Limited.
Viewed in the overall context and content, there is an urgent need to carry out a de novo review not only by the Central Government but also by the State Governments of all PSUs under their control to identify all loss-making units and direct their closure. And, the assets of such units may either be re-appropriated and used for setting up units of the latest state of the art technologies or alternatively monetize their assets for utilization for other beneficial purposes.
It goes without saying that the Governments both at the Central and State Governments must identify strategic sunrise innovative technologies that are beyond the capability of private players, particularly for research and development that requires large financial allocations, and set them up either on standalone mode or under public-partnership arrangement.
In sum, the political controversy, blown out of proportion by political parties of "Crown Jewels", more aptly, "Crown Eyesores", is contra national security interests. And, those partisan media channels criticizing monetization of either sick units or archaic/obsolescent technologies establishments must present an unbiased view for the public. Realize all alike that persisting with those "Crown Jewels" in the ICU-Ventilator status is rank intellectual bankruptcy.
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