Big message! PM Narendra Modi says government has no business to be in business

In a big message, Prime Minister Narendra Modi on Wednesday said the government has no business to be in business and his administration is committed to privatising all PSUs barring the bare minimum in four strategic sectors. "It is the government's duty to support enterprises and businesses. But it is not essential that it should own and run enterprises," he said. Further, PM Narendra Modi said the Centre's policy is to either monetise or modernise public sector enterprises, with the intent that the government has "no business to be in business".

Speaking at a webinar on privatisation by the Department of Investment and Public Asset Management (DIPAM), PM Narendra Modi said the Budget has given a clear roadmap to take India to a high growth trajectory.

Fiscal support to sick PSUs puts burden on the economy and public sector units should not be run just because of legacy, the Prime Minister said, adding many PSUs are loss-making and supported by taxpayers' money.

The government has many underutilised and unutilised assets and as many as 100 assets would be monetised to garner Rs 2.5 lakh crore, PM Modi Modi added.

Meanwhile, the government has lifted the embargo on private sector banks to undertake Central and state government business, which is still a forte of the public sector banks and three large private players in a limited way -- ICICI Bank, Axis Bank and HDFC Bank. With the permission, all banks would be allowed to conduct government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc. 

This step is expected to further enhance customer convenience, spur competition and higher efficiency in the standards of customer services, a government statement announcing the changes said. It will also give additional business opportunity to the banks to earn from taking up huge government business. Private sector banks, which are at the forefront of imbibing and implementing latest technology and innovation in banking, will now be equal partners in development of the Indian economy and in furthering the social sector initiatives of the government, the statement said.