02 October, 2020

Dusk To Dusk

The ramifications of putting off oil sector sales go beyond a mere inconvenient delay

Dusk To Dusk
Officially, it was only a deferment of the disinvestment process. But it could easily turn out to be a huge setback to the Indian economy. For, PM Atal Behari Vajpayee's decision last week to put the privatisation of two blue-chip oil PSUs on hold for three months has depressed stockmarket sentiment, put a question mark on the reforms process itself and probably scared off the already-shy foreign investors. There couldn't be worse news for Indian industry which was just about struggling to revive itself from last year's slowdown.

"The government's decision may lead to downgrading of India's economic outlook..." screams the latest report from the Institute of Economic Growth. Adds an apprehensive Asit Kotecha, managing director, ask Raymond James, a Mumbai-based investment banking firm, "It is a major negative as it questions the credibility of the government." But senior nda politicians like defence minister George Fernandes, oil minister Ram Naik and several others who were opposing the privatisation process have failed to comprehend the gravity of the situation.



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