Sale of Public Enterprises in Chhattisgarh and Modi Government’s Policy: A Serious Issue
Raipur>> The sale of Ferro Scrap Nigam Limited (FSNL)’s Bhilai unit by the Modi government has once again made headlines. This step not only impacts Chhattisgarh’s economy but also raises questions about the policy behind the privatization of the state’s resources and public enterprises. Senior Congress spokesperson from Chhattisgarh, Surendra Verma, has strongly condemned this event, accusing the BJP government of targeting the state’s resources and public enterprises.
This article will discuss in detail why public enterprises in resource-rich states like Chhattisgarh are being sold off under the privatization policies of the BJP government. Additionally, it will delve into the long-term impacts of this policy, Congress’s objections, and the potential steps that can be taken to protect the state’s resources.
1. The Sale of Ferro Scrap Nigam Limited: A Paradox
Ferro Scrap Nigam Limited (FSNL)’s Bhilai unit is one of the country’s leading public enterprises and has always been profitable. The company recycles scrap metal to produce valuable metals. At a time when the demand for such technical industries is increasing, the sale of this entity by the Modi government is puzzling.
In just the first quarter of this financial year, the company earned a profit of over ₹22 crore. Even in the previous financial year, its net profit exceeded ₹65 crore. The question that arises is why the government sold this profitable company for a mere ₹320 crore? Congress spokesperson Surendra Verma claims that the sale was made at an undervalued price and that foreign companies were unfairly favored in the process.
2. The Role of the Department of Investment and Public Asset Management (DIPAM)
The Department of Investment and Public Asset Management (DIPAM) had announced via its social media handle that the Bhilai unit of Ferro Scrap Nigam Limited was being privatized. DIPAM was established to expedite the privatization and disinvestment of public enterprises. Under the Modi government, DIPAM has handed over several significant enterprises to private entities, including Air India, BSNL, and now Ferro Scrap Nigam Limited.
A major part of DIPAM’s policy aligns with the government’s broader agenda of implementing the principle of ‘Minimum Government, Maximum Governance.’ However, under this principle, the privatization of public enterprises has become a highly controversial issue, especially when profitable enterprises contributing significantly to the state’s economy are being sold off.
3. The BJP’s ‘Evil Eye’ on Chhattisgarh’s Resources
Chhattisgarh is a resource-rich state, boasting abundant reserves of iron ore, coal, aluminum, and other minerals, which not only bolster the state’s economy but also meet the country’s industrial needs. Congress spokesperson Surendra Verma alleges that the BJP government has always had an eye on Chhattisgarh’s resources, claiming that the central BJP government is handing over these resources to private companies, especially to entities like the Adani Group.
There have been previous instances, such as under the Atal Bihari Vajpayee government, where Bharat Aluminium Company Limited (BALCO) was privatized. During Raman Singh’s BJP government in the state, iron ore mines and Nandraj Hill, which holds religious significance for tribals, were also given away to private companies. These examples highlight how the BJP government has repeatedly used Chhattisgarh’s natural resources for the benefit of private companies.
4. The NMDC Nagarnar Plant is Also on the Block
Congress has alleged that following the sale of Ferro Scrap Nigam Limited, the government is now preparing to sell NMDC’s Nagarnar plant. The disinvestment process for this is already underway, as seen on DIPAM’s website. NMDC’s Nagarnar plant is another major public enterprise in Chhattisgarh, which has been running profitably. However, under the BJP government’s policy, this too might be handed over to private companies.
The Nagarnar plant was established to foster Chhattisgarh’s industrial development, and its sale could severely impact the state’s economy. Moreover, Congress claims that this disinvestment is a violation of the rights of the tribal community in Chhattisgarh, as the plant is located in a tribal-dominated area.
5. Chhattisgarh’s Tribals and Amendments to the Forest Rights Act
Under the BJP government’s policies, there have been continued attacks on the water, forest, and land rights of Chhattisgarh’s tribals. Amendments to the Forest Rights Act are stripping tribals of their rights. The shrinking of the No-Go Area, which restricts mining activities in forest areas, is making more land available for mining. This threatens the traditional habitats of the tribals, leading them to fight for their rights.
Congress spokesperson claims that commercial mining has been initiated in forest lands, benefiting private companies. Additionally, Adani has been given control over the mining operations in Coal India Limited and South Eastern Coalfields Limited (SECL) under pressure from the government. All these actions are against the interests of the state’s tribal communities and have led to deep dissatisfaction with the BJP government’s policies.
6. BALCO and Adani: The Privatization Link
The BJP government’s history of handing over Chhattisgarh’s resources to private entities goes back many years. The privatization of BALCO under Atal Bihari Vajpayee’s government was a highly controversial issue, which led to large-scale protests in Chhattisgarh. The sale of BALCO raised concerns over employment and economic security for the people of Chhattisgarh, but despite these issues, the BJP government handed it over to private companies.
Similarly, during Raman Singh’s tenure, Chhattisgarh’s resources were transferred to companies like Adani. Iron ore mines and Nandraj Hill, a religious site for tribals, were handed over to Adani through a fraudulent gram sabha No Objection Certificate (NOC). Additionally, the forests of Hardev were extensively cleared to serve the interests of private companies.
7. Modi Government’s ‘Crony Capitalism’ and the Sale of Public Enterprises
Congress spokesperson Surendra Verma alleges that the Modi government has always prioritized the interests of a select group of wealthy capitalists. Under the guise of ‘crony capitalism,’ the Modi government is continuously handing over public enterprises to private companies. This policy weakens public assets and directly impacts the common people.
The privatization of profitable public enterprises weakens the economy of the country. The benefits derived from government enterprises can be used for the welfare of the public and the development of the state, whereas after privatization, only a few private companies profit. In the case of Ferro Scrap Nigam Limited and the NMDC Nagarnar plant, the privatization seems aimed at benefiting a select group of capitalists.
8. Arguments Behind Privatization and Opposition
The BJP government’s argument for privatization is that the cost of running public enterprises is increasing for the government, and they are not being run profitably. However, this claim is refuted in cases like Ferro Scrap Nigam Limited, which has consistently earned profits.
The disinvestment of public enterprises is viewed as a short-sighted solution, which overlooks the long-term benefits these enterprises provide to the state and the country. It also raises concerns about the loss of jobs and the weakening of state resources. The Congress party and other opposition groups continue to strongly oppose this policy, calling for more transparency and accountability in the process of disinvestment.
In conclusion, the sale of public enterprises like Ferro Scrap Nigam Limited and the potential sale of NMDC’s Nagarnar plant has raised serious questions about the government’s commitment to safeguarding state resources. The impact of these decisions will be felt not only in Chhattisgarh but across the country.
