"In a rare show of candour not adequately reported or covered by the mainstream media, Union Home Minister and immediate past president of the ruling BJP -- Rajnath Singh -- told a gathering of professionals in Pune last week that the faith of people, who brought the Narendra Modi government to power with absolute majority, will not be allowed to be broken. It isn't often that politicians accept their mistakes or shortcomings, they are blasé about what happens with and around them. But Rajnath oversaw the Modi victory march in May 2014 is a consummate politician, as also a member of the Sangh which oversees the work of its political arm, the BJP. Rajnath's comments need to be viewed from the prism of the RSS meet in Delhi where several top ministers made presentation. It is obvious that the RSS must have taken the government to task over its failure to implement policies and promises.
Perhaps, galvanised with the One Rank One Pension scheme acceptance despite financial constraints, the government now wishes to move to the next level of competence. At least, one hopes to see more dynamism and less talk now. PTI quoted Rajnath as saying,""I know many people are saying that 15 months have gone but no change is seen on the ground. I want to tell you all that the way the Prime Minister is working, the way our government is working, I can assure you that your confidence will not be broken. Give us some time. After some time, people will see the results and the good work being done by this government."" Now these are telling words from a top minister virtually number two in the Union Cabinet and equally an important member of the RSS.
While the home minister dwelled on the lost decade or the 10 year dispensation of the Congress led UPA, after 16 months of being in government, one can argue that the tangled knots have been opened and a new culture of governance has been put in place. He qualified this by stating, ""Our intentions are good. We have taken many steps. You will see the results soon."" I appreciate his truthfulness and his honesty for if it has dawned on the home minister that over promise versus delivery trust deficit is only widening with the passing of each day, then he also understands that people have short memories in India. The crucial Bihar election is finally upon us and its results will be out of the way before Diwali.
India needed new leadership, it got it. India required right wing dynamism, it got that too. India needed a change from a default setting of quasi socialism and welfare economics, it got that too. Now the question is - has anything changed with the change in governments - from left of centre to outright right? Sadly one has not seen any evidence of change barring sloganeering, absence of corruption and financial scandals and an aggressive foreign policy and outreach programme. Benign crude and commodity prices have not been taken advantage of. No cathartic reform has been initiated. Swatch Bharat, Digital India, Skill India have not moved forward at all. I was told that the World Bank has been sitting ready with a $1.6 billion commitment towards Swach Bharat forever. Digital India is at a standstill because of a antagonistic and hostile approach to large telecoms. And job creation has hit a wall.
What we are doing instead are the tried and tested mechanisms like offloading minority shareholding of PSUs and just redirecting cash from the left to the right pocket. Take the recent IOC offer for sale which took place on Manic Monday when the stock markets plunged to historic new lows. Guess who the white knight was who saved the float - YES - LIC of India pressed into service by the finance ministry. These old dogmas have to change, new intent has to be shown. We aren't even creating shareholder value through these divestments.
More of the same is something that has gripped governments like rigor mortis, it needs to be shaken. I was just looking at some old documents and to my chagrin found how good money continues to be wasted by pouring it after bad money. Look at the vast phalanx of sick Public Sector Enterprises and there are a zillion owned by the centre and the states. This is what I found:
HMT: Revival plan mooted by BRPSE in 2006 after incurring losses over years.
As of March 2012, total government loan including budgetary support for statutory dues to its employees was Rs 417.62 crore.
A note was prepared for the Union Cabinet on the company's revival plan after involving an external consultant. It required Rs 992.99 crore to survive.
NEPA: Sick unit under BIFR since May 1998.
Revival plan entailed financial restructuring and fresh fund infusion - Rs 362.18 crore (govt Rs 234.18 crore and bank/FI borrowings Rs 128 crore). Non-fund based assistance of Rs 930.14 crore through waiver/conversion of Govt of India and Govt of MP loan and interest.
Tyre Corporation of India: Referred to BIFR in May 1992. Cabinet on June 12, 2000, approved in principle financial and capital restructuring package for tyre division, Kankinara, and exploring the possibility of JV through strategic sale.
For Tangra unit, cabinet recommended closure winding up by offering VRS. Tangra unit shut in August 2001.
In November 2008, cabinet approved financial restructuring plan through cleaning of balance sheet and disinvestment.
Waiver of payments amounting to Rs 815.59 crore made. Disinvestment of TCIL through outright sale stalled due to land hurdles in West Bengal. Three Kolkata based groups - Sanjay Buddha's Patton, Pawan Kumar Ruia's Ruia Grouptitasgarh Group's J P Choudhury - had been short listed for bidding in September 2013. The Tyre Corporation of India Ltd Disinvestment of Ownership Act goes back to 2007. We are now in the second half of 2015. "
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