|Money that we're paying for a better, stronger economy...is almost thrown down the drain through these loss-making public sector enterprises.|
By Vivek Kaul
Economic Emergency Warning Sign #1:
The Public Sector Money Pit
Just take a look at the following table on the evolution of Public Sector Enterprises in India...
||India had Five Public Sector Enterprises
||India had Two Hundred Public Sector Enterprises
||India had Two Hundred Thirty-Seven Public Sector Enterprises
||India had Two Hundred Ninety-Eight Public Sector Enterprises
Now, I'll not even get into discussing why a government needs to be in business...
In fact, Modi himself reiterated the old adage - Government Has No Business Being In Business, during his US visit in 2014.
So, even the government believes that it needs to get out of these loss-making public sector companies.
But the questions remain...
- Why aren't we closing these loss-making Public Sector Companies?
- Why is the government not following up on its divestment promises?
- Why are they shuffling ownership between government enterprises?
In fact, at last count, the government owned almost 300 businesses.
And right now, I want to show you the Big Government Action that's hidden these Public Sector Companies.
In these Public Sector Enterprises are companies that are supposed to manufacture...
- And absurdly enough, even Photo Films.
Yes, on Page 83 of this book you will find how our Big Government actually wasted crores in running a business that is supposed to manufacture Photo Films.
Photo films that have already gone obsolete.
And as expected, the business faced a loss of Rs 2,164 crore in just 2014-15.
And then, we also have businesses like...
- Mahanagar Telephone Nigam Ltd. (MTNL), a telephone company that had incurred losses of close to Rs 5,000 crore between April 1, 2014, and March 2016. (revealed on page 44)
- Air India. An airline that has incurred losses of thousands of crores over the years. In 2014-2015 alone, the airline lost Rs 5,860 crore. (revealed on page 89)
- Bharat Sanchar Nigam Ltd (BSNL), another telecom company which incurred a mindboggling loss of Rs 8,234 crore in 2014-15. (details onpage 46)
Now you can imagine how much of our hard-earned tax money has the Big Government wasted on these companies over the years.
Money that we're paying for a better, stronger economy...is almost thrown down the drain through these loss-making public sector enterprises.
Every rupee that goes towards sustaining these companies is taken away from some other, and arguably more important, area.
In fact, in just 2014-15, these businesses lost a whopping 27,360 crore!
The top loss-incurring government companies during 2014-2015.
|Sr. No.||Name of Company||Losses (in Rs.crore)||