March 01, 2012

Investors Resent Diversion of PSU Cash For Vote Bank Subsidies

Investors are very upset over Government directing PSU s on how to use their cash surplus. It seems that the days of Princely States ( Maharajas) are not over  when there was No difference between the State's Treasury and Personal finances of the Maharajas

Cash Rich PSU s are Navratnas not Kamdhenus. PSU s surplus should be used for business purposes according to what their Managements feel is best for the companies. ( ONGC and Coal India should make India secure in crude oil and coal by acquiring energy assets abroad ). Government should not use PSU resources to bridge its current deficit. Instead Govt should do reduce the runaway subsidizes ( especially Urea and Diesel )

 Also reduce the bloated bureaucracy costs.( By having a 6 day week bureaucracy can be reduced by 20 % ). Let India`s National Interests take precedence over Vote Bank politics.

Selling the Family Silver ( in this case PSU `s Cash Reserves)is not a very wise move . Think Long Term . Think about India ( not just Vote Bank Constituencies ). India has many politicians but no statesman.

3 comments:

  1. India pays nearly 1.6 lakhs cr as subsidies, which in order burdens on Indias fiscal. And always there will be a question whether the said subsidy is used by the genuine citizen or the most needy, Can there be any alternative were by the real effected people of India can be benefited by the subsidy given by government. 9 months back Iran managed to reduced its subsidies by 50 % and this is how theydid– http://bhavikkshah.blogspot.com/2011/10/easy-way-for-india-to-do-away-with.html

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