Asset Monetization and its Economic Impact

Event : Asset Monetization and its Economic Impact

Article: Deccan Chronicle

Article Date : 18 OCT 2021

Article Link :  https://twitter.com/DravidianForum/status/1450336893749501954?s=20

Most of power subsidies goes to rich, says PTR

DC CORRESPONDENT CHENNAI, OCT 18

The bigger chunk of electricity subsidy goes to people in the upper strata of society and not to the common people, said finance and human resource management minister Palanivel Thiaga Rajan.

Addressing a webinar on ‘Asset monetisation and its economic impact’, organised by the Dravidian Professionals Forum, he said: "When scrutinised it is noticed that the greatest portion of the subsidy in electricity goes to persons using 500 to 1,000 units and above in factories because of the way subsidies have been structured. The government  provides subsidies for the first 100 units of power to consumers. 

The Tangedco has a debt of Rs 1.71 lakh crores due to labour cost and social cost and all kinds of linkages. The Tangedco is operating at a loss of about Rs 30,000 to 35,000 crore."

Talking about restructuring the Tangedco, he said there are multiple ways to solve the problem, but one idea suggested to us, a model adopted in Delhi and Odisha, is outsourcing, including the staff under the electricity department.

He elaborated that an outright positive dividend is paid to the government of Delhi by the contractor. However, the Tamil Nadu government is thinking more prospectively rather than retrospectively in terms of existing assets to monetise, he added.

Similarly, the Tamil Nadu water administration department and Tamil Nadu water administration department and Tamil Nadu Water Supply and Drainage Board have about 1,500 employees and 9,000 pensioners and  clearly an unsustainable financial model based on track record.

He noted that “we are not enthusiastic about monetising things like the Chennai airport, which are on the list cited by the central government, and Chief Minister M.K. Stalin wrote to the Union government stating our position on such moves.

Talking about asset monetisation, he said political interference in the functioning of the public sector units was one of the major causes of its decay and bad performance.

Among others Prof. Arun Kumar, Institute of Social Sciences, New Delhi, C H Venkatachalam, general secretary, All India Bank Employees Association, Madras High court advocate, Puhazh Gandhi and business consultant Dharanidharan spoke. More than 150 participants from various parts of the country and abroad attended the programme.