GIC employees association opposes PM Modi’s policy to sell PSUs

General Insurance employees all India association, reacting to the Prime Minister Narendra Modi’s statement during a webinar on 25th February, vehemently oppose the policy of selling the Public Sector Undertakings (PSUs), the national wealth to the corporate houses of India and foreign brand against the interest of our people and our country.

People of the country know that the Public sectors have played an important role in developing Indian economy, successfully conducting Green and white revolutions, generating huge employment, and providing infrastructures to the country on which private players developed.

The insurance and banking sector flourished to greater heights after nationalisation and played an important role in the development of the economy and thereby creating a self reliant economy. GIEAIA along with JFTU in PSGI Companies will fight back privatisation and disinvestment in the insurance sector.

Mr Manmohan Singh, the former prime minister himself had admitted that during the global meltdown, Indian economy survived only due to strong public sectors in the country.

The Prime Minister Modi and the Finance Minister Nirmala Sitharaman have openly accepted their policy under the so-called mantra of “monetize and modernize” while addressing a webinar yesterday. Once again the understanding of the present ruling regime is exposed from the days of its earlier avatar “Jansangh” days in 1950s when the government of newly independent India was chalking out the policy of building the self reliant economy, to go for exploration and research and building heavy industry base in the interest of national development and sovereign rights on its natural resources.

The Jansangh then had opposed this policy in the parliament and its leaders had used the terminology “the government has no business to do business”.

Yesterday the Prime Minister repeated while arguing in favour of disinvestment in the words that is why I say the government has no business to remain in business. The strategic or the non-strategic PSUs, all are in their hit list among the 100 announced by the PM. Selling family silver and then calling it earning and benefits is the hollow and dangerous understanding of the Modi government.

Today, the fact is that significant numbers of CPSES on sale are profit making units. In 2018 -19 Net profit making CPSES were rupees 1,74,587 crores, dividend paid rupees 71,916 crores. Loss making units were around 31,635 crores. Most of the CPSES are profitable and well governed if the government/state is determined it would not take  long to transform the public sector compared to the private corporation, the CPSES are better placed to make their due contribution to achieving the goals of Atma Nirbhar Bharat agenda.

The policy of privatisation of public sector enterprise allows 100% foreign direct investment (FDI) in the strategic sector like defense, railways, civil aviation, satellites, power, petroleum, mining, coal among others.

All of this is happening while the government is strongly chasing for Make in India or make Atm Nirbhar (self reliance) Bharat. This is a big contribution in making the sphere of the economic  and industrial policy framework. The new policy on the public sector will cut off the legs on which India’s economy stands, thereby severely destabilizing it. It will drive the market towards monopolist control and thereby pauperzing the consumers, it will deprive the future generations of their family assets and will pose threat to human and national security.

Privatizing PSE’s will affect nation building, end reservation policy and will be a threat to India’s security.

Privatisation policy will affect 40 crores policy holders who get 90% of the profit of the LIC as bonus.

Privatisation of banks and insurance companies will affect crores of customers, agriculture, small and micro enterprises, small traders, students who want education loans, youth who want to be self employed, women empowerment and the social security of citizens at large.

Weakening the public sector will weaken the nation. Hence, we appeal to the honorable Prime Minister to strengthen them failing which the employees will have no option but to oppose it vehemently. As per UFBU rupees 80 lakes crores is at risk if public sector banking is privatised.

It would harm India’s sovereignty, kill its self reliance and would be actually mortgaging the Indian economic interest to the international finance capital. Today Mr Prime minister has surrendered before crony capitalism and its beneficiaries the Adanies and Ambanies.

GIEAIA appealed to the entire working class of the country and the general masses at large to fight back these anti national policies of the Modi govt.