V. N. Jha
New Delhi:- As if to Propitiate Goddess Lakshmi during the coming festive season of Diwali, Modi Sarkaar has decided to enrich the cash bowls of the Govt. by announcing disinvestment in Maharatna ONGC, Coal India ltd. (CIL) and Navratna Power PSU NHPC. The govt. has decided to disinvestment 10% and 11.3% in CIL & NHPC, whereas ONGC will shed its flab of 5 percent, thus, bringing in more tha FOurty five thousands crores at current share prices to the treasury of the Govt. while it will, on the one hand, cut the fiscal deficit by reducing the budgetary gap of fifty eight thousand crores, it will also make cash available to the Govt. for financing its Social Sector schemes and other subsidies. The move also signals Govts. resolve to start big ticket reforms and put the fears and controversies regarding disinvestment behind. Also, the thinking in the Govt. is to try to encash on the continuing spate of bull run in the market and prop up investors sentiments to kick start the economy.
Much awaited and desired Disinvestment in the public sector undertakings were stalled during the regime of Manmohan Singh led UPA II. Global recession and Indian economy’s slowdown combined with the lack of bold economic decisions and fear of sell out charges by opposition led to this inertia. The ongoing mega scams in the fields of Coal and Telecom also contributed to this inaction on the part of the Govt. Now, against a gloomy energy scenario and near finality of court Judgments have impelled the Govt. to lift the sombre economic mood in the country. Therefore, the provisions for earmarking certain percentage of shares for Retail Investors is intended to spread the feel good factor. Also, these PSUs are in direct need of shedding its flab and infuse fresh capital and talent to make them more efficient and accountable.
Coal India Ltd. keep hogging the headlines due to allotments of Coal blocs to private parties which have now been declared illegal by the Supreme Court as well as Coal Production and allocation and supply of Coal to Public and Private Sector Power Companies. The deficient Production and erratic Coal supply by CIL and its subsidiaries have not only effected Power Production but also led the growing import of costly Coal. The CIL & its subsidiaries are in dire need of infusing new Technology and accountability in its management. Also it has to get rid of the massive corruption prevalent in this black diamond sector.
NHPC with its projected goal of producing 10,000MW electricity is right now lagging behind its Target. Once a pride of Indian Power sector, the company is lying headless since the year 2011 when the interview for the post of CMD were held and the PSEB(Head Hunter of the Govt.)recommended.two names who happen to be Directors at NHPC. Unfortunately both of them were not cleared by the Central Vigilance Commission (CVC) and found to be unfit to become CMD of the company. NHPC has been rudderless and started slipping on targets as well as efficiency. Thus, thousands of Megawatt Projects worth thousands of crores are stuck in the Northeast and Jammu & Kashmir- the prime areas where expansion of hydro power is feasible and required also. Because of unresolved issues at NHPC, the other small hydel projects by the private players are also stuck in the region. Add to this the ongoing court cases by company’s Directors and prevailing inaction of the Govt., NHPC is turning into a White Elephant. It is not only in the dire need of a young, energetic, intelligent and versatile leaders as CMD but also it requires swift decision making and good management practices. While the prevailing inaction on the part of the Govt. is only adding to the confusion and growing speculative market of “ Kaun Banega CMD” season II. The players are many, field is open, rules are yet to be framed and the Referee is reluctant and ill prepared.
