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Sick Business

‘’Sick Industry’ itself is a big business as persons in power, bureaucrats and some lower-level government functionaries reap enormous benefit from a ‘sick unit’, albeit the lone losers are workers. Central Trade Unions know well how a ‘sick unit’ is being utilised by vested interests as milking cow. The industries that used to handle liquid cash in a big way as in the case of coal, jute, plantation etc. went bankrupt first. Others followed suit because a chain reaction soon started. Nationalisation was the Indian answer to bail-out. Private players who made their companies sick, heaved a sigh of relief. They are now getting back their lost empire under the specious cloak of reforms. Public risk, private gains! This has all along been the generel policy of the Centre, irrespective of ruling circles that come and go after every five years.

When banks were nationalised in the late sixties, the official left hailed it as a bold step in achieving ‘socialistic pattern of society’ through peaceful parliamentary means. Then the government itself indulged in making nationalised banks ‘sick’ with a calculated move. Now they are all set to de-nationalise them as it is again the Indian answer to ‘bail-out’.

Long before every move for sale of a tranche of shares of the public sector banks, the government publishes a long list of NPAs (Non Performing Assets) of these banks amounting to thousands of crores of rupees. The idea is to clear the ground for distress sale of shares in lots to private investors, domestic or foreign. But if one scrutinises the NPAs of each bank thoroughly, it will be found that most of the NPAs, if not all, are due to 'directed' loans. By directed loan is meant that chunk of bad loans ab initio which the bank executives were pressurised to sanction by the political bosses encircling each bank as well as at the ministerial level. These bad 'directed' loans are destined to be NPAs from conception time and the bank authorities are in no way responsible for them. The political tribe is solely responsible for them. Yet they falsely yell with pain and shed crocodile tears for the loss of public money. Then the solution they prescribe is sale of the public asset to private investors. In this way India's parliamentary political class which has infested all PSUs with virus, vermin and pirates in order to reduce their profitabitity both in terms of social benefits and ability to generate monetary surplus. This scum of ruffian ruling elites of India has turned all the PSUs into so called NPAs in the eyes of the gullible public in order to clear the ground for handing them over to private investors on a platter. This is a conspiracy of the parliamentary political parties to sell the country's vital interests to profiteers, domestic and/or foreign. And this is the, way, the only way, known to India's ruling class to close the gap of fiscal deficit. But why this foul means only? If the parliamentarians can increase manifold their own salaries, allowances, foreign travel etc. expenses and all conceivable perks, why can't they reduce those self-aggrandizing amenities thereby curtailing excesses in public expenditure when the country is facing yawning fiscal deficit for years?

Frontier
Vol. 45, No. 23, Dec 16-22, 2012

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