If the government seems to be repeatedly failing to raise funds through disinvestment, it is not just a risk or a coincidence.

From tomorrow, June 1, the Government of India will begin its efforts to encourage investors in the United States to invest in IDBI Bank. IDBI Bank is one of the central government’s ambitious export targets. The central government slapped the life insurance corporation on the neck as it was burdened with arrears and the bank went bankrupt. Recently, the Life Insurance Corporation approved a successful experiment. Earlier the central government was required to sell five per cent ownership in the corporation. Although the ratio was reduced to three and a half per cent and this three and a half per cent was sold, the Center did not get the expected revenue. One such life insurance corporation is owned by IDBI Bank and the other two are centrally owned. The Center hopes to raise four paise by selling its stake in IDBI. Help the world so much! However, it is not yet clear to what extent the stake in IDBI Bank will be sold. But the center believes American investors are eager to get what they want to sell. That is why the IDBI Sales Meet in the US will start from June 1 with the Central Government. The belief that it will lead to enormous investment must be central. Rulers should be hopeful. Never mind. In this context, however, the culmination of this optimism should be to see what happened to another great central agency departure last weekend.

The Grand Central Company is Bharat Petroleum. Similarly the ambitious central government-owned investment program called BPCL was canceled by the central government at the last minute. The reason? None of the big private entrepreneurs were interested in investing in this company. This has happened before. In fact, BPCL is the second largest fuel oil company in India. The first course is Indian Oil. She is also a government official. The sharp rise in the price of crude oil is hurting the coffers of these companies. However, private entrepreneurs are not ready to invest in BPCL, which has three large oil refineries. Three months ago, during the budget session of Parliament, Finance Minister Bhagwat Karad spoke boldly about how the BPCL would respond and complete the process in a timely manner. But now there is no response and the government has to postpone the de-issue of the company. The central government has decided to sell its ownership in BPCL in November 2019. It will be three years in another four months. The company has a 52.98 percent stake. Wanted to sell the government. The central government holds 45.48 per cent stake in IDBI Bank and Life Insurance Corporation 49.24 per cent. This means that IDBI Bank is owned by Life Insurance Corporation rather than the Center. This means that the life insurance corporation should be the final word on the bank rather than the center. But it is not so. Because the life insurance corporation is owned by the government. The government was shocked when it sold a three-and-a-half per cent stake in the property. However, shares of Life Insurance Corporation fell on the first day. Life Insurance Corporation or IDBI Bank or BPCL. Above all, the government seems to be failing to raise the necessary funds. If this happens often, it is not just an accident or a coincidence. So it is important to find the cause behind it.

The reason behind this is the reluctance of the government to give up crocodile ownership. This means that these companies do not have the power to make their own decisions. Documents are independent, independent, etc. But the fact is not so strange. The reality of this freedom lies in the ‘no’ answer to the question of whether the BPCL can increase the petrol-diesel rates it sells at its own petrol pumps during elections or during significant political challenges. In fact, 12 years ago in 2010, the Manmohan Singh government lifted government control over petrol and diesel prices. This means that these state-owned companies are allowed to set their own petrol-diesel sales rates according to their profit margins. But in reality she did not come. In the absence of independence, these state-owned oil companies were left to defend themselves. This behavior of the central government is like the parents who did not give freedom to Chiranjeevi who was standing on his own two feet. The only difference is that they can rebel and leave home for the rest of their lives. But this government does not have that right. They have no choice but to keep their word to their parents. It seems that these companies will not incur losses. That’s the way it is. But not giving them freedom in duty management is really going to hurt the central government.

This is due to the persistent failure to build the required Ganges and the growing fiscal deficit crisis. The idea is to sell the ownership of these state-owned companies to generate small revenues and reduce the gap between rising costs and government revenues. According to the central government, the sale of a BPCL will generate revenue of Rs 65,000 crore for the Center this year. Seemed to be standing. The government has set an export target of Rs 1.75 lakh crore for the fiscal ending March 31 this year. But in reality 13 thousand 561 crore rupees came. That’s all. In view of this awful fact, the target was reduced to Rs 78,000 crore in the budget introduced on February 1 this year. But even that is impossible. As a result almost eight per cent of the original target will reach the government through the distribution of funds. Life Insurance Corporation did not appear to the government due to frustration, delay in sale due to cold response by BPCL ownership, export problem of Pawan-Hans, a government company providing helicopter services, and so on. Moving on after so many years. As a result, the current government has failed to meet its export target after 2019. Why not three out of the previous five years but this goal has been achieved.

In such an environment, while domestic investors are reluctant to take over the ownership of state-owned enterprises, the government is trying to attract foreign investors. Foreign companies have so far shown no interest in buying BPCL. Let us see how successful this attempt with IDBI Bank was. Sometimes unsold items in the house come out! That is why it would be welcome if the Casina Target fills the full gap.