Bank employees have urged the government to extend the Covid-19 precautions taken in government offices to their workplace as well

Bank employees have urged the government to extend the Covid-19 precautions taken in government offices to their workplace as well. The demand comes following the recent government decision to reintroduce the 50 per cent work force system and Saturday holiday in public offices.

The All Kerala Bank Employees’ Federation has petitioned the government to direct banks in the state to work with 50 per cent workforce and to announce Saturday as a holiday. “As customers throng banks in large numbers, we are vulnerable. There is no system in place to restrict the entry of visitors to banks,” association’s general secretary C D Joson said.

The petition raised apprehension over the rise in the number of cases despite the best interventions by the government. Government offices in the containment zones function with several restrictions. Similar restrictions are to be brought in the banking sector also. Banks that face severe threat in a containment zone need to be closed down temporarily. Others in the zone need to function from 10am to 2pm with a limited number of staff.

Media reports on Public Sector bank privatisation

Bank Employees Federation of India
NARESH PAUL CENTRE
53 Radha Bazar Lane, Kolkata 700 001
                         
Circular No.35/2020       4th June 2020                                     
To all Units, Affiliates, OBs, CC & GC Members

Dear Comrade,

Media reports on Public Sector bank privatisation

We came across reports published in print and electronic media recently stating that the Govt. of India has started discussion on privatisation of public sector banks (PSBs). Reportedly,  this is being undertaken at the instance of ‘Niti Ayog’, the Govt. think tank whose suggestions include allowance of ’long term private capital’ in the banking sector, besides provision of banking licenses to select industrial houses. Although decision is yet to be taken in regard to privatisation of PSBs, the media further reported that the considerations at present include Indian Overseas Bank; Punjab & Sind Bank and Bank of Maharashtra which were left out of the 10-bank-merger effected from 1st April 2020.

We are all aware that since adoption of New Economic Policy in 1991; successive Governments at the Centre, in the name of banking sector reforms, formed many Committees whose tailor-made recommendations were ultimately aimed at privatisation of public sector banks. In the face of uninterrupted movements of the bank employees’ organisations, the Governments were compelled to hold their decision of privatising the PSBs. With the NDA-I Govt. coming into power in 2014, the reforms measure gained momentum when number of public sector banks was reduced to 12 till now from 27 through different process. While 14 banks were merged/amalgamated with other PSBs; IDBI Bank had been listed as private sector bank subsequent to forced acquiring of 51% stake by the LIC of India.

We all understand that a myth is being created about private sector banks when many of these are suffering from inherent problems. Many private banks, facing serious problems, were taken over by PSBs to safeguard interest of the depositors; IDBI Bank is first instance of privatisation of a public sector bank since bank nationalisation fifty years ago. We are aware about recent crisis of Yes Bank, the fourth largest private bank of the country, where RBI, in the interest of its customers and depositors, had to supersede and suspend Yes Bank’s board as a result of huge amount of bad debts. State Bank of India invested Rs 7250 crore in the bank amid financial crisis holding 49% stake in capital of the bank. Several Cooperative banks and non banking financial companies (NBFCs) are also facing serious crisis nowadays. The PSBs are not confined to save the banks and financial companies but are also taking care of business houses in other sectors of economy including aviation sector.

The country’s fragile economy is facing unprecedented crisis in the situation of Covid-19. Several measures have been announced by the Govt. and Reserve Bank of India. All these measures are supposed to be implemented mostly through the public sector banks. The merger of 10 public sector banks effective from 1st April 2020 have already posed serious problem in discharging responsibilities for revival of economy amid overall crisis and privatisation of public sector banks, if taken up, will further damage the process of relief measures. It is reported in the media few days ago that the private banks garnered smaller share of incremental deposits raised by the banking sector in 2019-20 following the crisis in PMC Bank and Yes Bank which shook confidence of the depositors. Hence, consideration of privatisation of PSBs is also against the interests and sensitivity of the common people of our country in general.

We don’t consider this as an isolated agenda. Ever since NDA Govt. re-elected in 2019; it is aggressively advocating for large scale privatisation of public sector enterprises of the country. The Govt. of India, taking full advantage of national lockdown hastily pushing through its neo liberal agenda taking several steps against the interest of the country and its people. The Union Finance Minister while announcing relief package announced that in strategic sector, maximum four public sector enterprises will remain while the rest will be privatised or closed along with those in non-strategic sector. We have already mentioned that though the FM reportedly told that this decision is not applicable to banks but we should not be complacent. Now, reports of privatisation move are pouring in justifying our suspicion regarding ill motives of the Govt.

BEFI has been associating itself with broader democratic movement and the movement of the working class of the country since initiation of new economic policy. We are of the firm opinion that the bank employees’ movement should be closely associated with  movement of the working class against Govt. policies along side organising  sectoral movement. The Central Trade Unions have already organised protest movements suitable to the present situation; while discussions are on to organise big protest demonstrations once the lockdown period is over.

We feel that there is necessity of taking the issue jointly at the apex level; till then we should try to make the employees and customers aware regarding the ominous stance of the Govt. In the prevailing situation, we call upon our State Units to organise protest demonstrations against Govt. moves taken to weaken the public sector banks of the country with an ultimate aim of privatisation. We advise to hold these demonstrations preferably in front of main/prominent branches/offices of Indian Overseas Bank at all cities in consultation with our affiliates  therein at the earliest; following the advisories/restrictions issued for Covid-19.

With warm greetings,

Yours comradely,
 .
Sd/-(Debasish Basu Chaudhury)
General Secretary

How to transfer your PPF account from one Bank to another Bank or Post Office???

 The Public Provident Fund (PPF) is one of the most popular investment avenues among Indian savers mainly because of the high degree of safety and its exempt-exempt-exempt tax status.

You can invest in PPF through banks and the post office. However, unlike banks where you can transfer funds online, the post office offers no such option to its investors. This is problematic as visiting a post office every time you want to invest can be a tedious affair. This could be a reason why someone ..would want to transfer their holdings in a post office PPF to a bank.

Some who have a PPF account with a bank would also want to transfer their account. It could be because they can't visit the branch, they are relocating to another city for employment purposes, they are unhappy with the services of the bank and so on.

Both bank and post office PPF account holders can transfer their accounts from one bank to another, or from one post office branch to another or bank. Here is how you can do it.

Transferring within the same bank branch or post office

If you want to transfer within the same bank or post office, then the process is quite simple. You have to visit your existing branch and submit an application to change the branch. The process can take one to seven days depending on the bank or post office branch.

Transferring from post office to bank and vice versa

If you want to transfer your account from a post office to a bank or vice-versa or one bank to another, here's how you can transfer your PPF account:

Step 1. Visit your existing bank/post office branch along with your PPF passbook.

Step 2. You will be required to submit a transfer application request. On the application form, you will be required to mention the full address of the post office/bank's branch where you wish to transfer your PPF account

Step3. Upon receiving your PPF transfer application request, the existing branch will start the process. Collect the receipt of the transfer request. The existing branch will send the following documents to the new branch:
a) Certified copy of the account
b) Original Account opening application form
c) Nomination form
d) Specimen of your signatures
e) A cheque or demand draft of the outstanding balance
f) Existing PPF passbook

Step 4.

Once the new bank /post office branch receives your documents from the old branch, the branch officials will intimate you about the receipt of your documents.

Step 5. At the new branch, you will be required to submit the fresh account opening form, change of nomination form, if any and original passbook.

Step 6. Carry your photographs, PAN card, address proof such as Aadhaar card, voter's ID as your bank might ask you to undergo the know-your-customer (KYC) process again.

The transfer process can take up to one month.

Things to keep in mind
Even though transferring of PPF account requires you to undergo the KYC process again along with filing up of fresh forms, the transfer of account will be considered as a continuing account. Therefore, all benefits such as premature withdrawal, loan facility will not be affected.

Due to transfer process, a new PPF passbook will be issued to you and youroutstanding balance will be shown as credit of balance transfer. It is advisable to take a photocopy of the old passbook for record of old transactions.

Read more at:
https://economictimes.indiatimes.com/wealth/personal-finance-news/how-to-transfer-your-ppf-account/articleshow/64078658.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

All bank will be fully closef for 10 days from 19.06.2020

As per Tamilnadu State Government Notification issued today (15-06-2020), all Banks in Chennai, Kanchipuram, Chengalpattu and Kanchipuram Districts will be fully closed for 10 days from 19-06-2020 to 28-06-2020.
However, they will function with 33% staff on 29th & 30th June, 2020 (2 Days only).
For those who work in banks situated in these 4 Districts, their period of absence will be treated as 'ON DUTY'.
However, there are no restrictions placed on ATMs during this period (God only knows how they will be made functional).
MOST IMPORTANT:
Between 19th June and 30th June, 2020, no vehicles will be allowed on the roads, except Ambulances and others on Essential Services (Here, banks have been excluded under the definition of Essential Services specifically).  This ban applies to Own Vehicles (both 2 Wheelers and 4 Wheelers) as well as hired vehicles like Autos, Share Autos (7 Seaters), Maxi Cabs, Cabs/Taxis etc.

Govt may not privatise PSBs in FY21 over low valuations, high NPAs: Report

Privatisation of any public sector bank (PSB) during the current fiscal is very unlikely due to their low valuations and mounting stressed assets amid the COVID-19 crisis, sources said.

Four public sector banks are under the RBI's Prompt Corrective Action (PCA) framework, which puts several restrictions on them, including on lending, management compensation and directors' fees.

So, it does not make any business sense to sell these lenders -- Indian Overseas Bank (IOB), Central Bank of India, UCO Bank and United Bank of India -- as there will not be any suitors for them from the private banking space, the sources said.

The government will refrain from distress sale of its entities, especially if they are in strategic sectors, they added.

Forget outright sale, hardly any public sector bank has gone for stake dilution in the last many years as valuations have been very depressed, sources said, adding the government stake in some PSBs has gone past 75 per cent due to successive capital infusions for meeting mandatory regulatory ratios.

The COVID-19 pandemic has not only halted the process of recovery of PSBs but it is going to have an adverse impact on financial health of private sector banks too, they said.

Sanguine about better financial health of the PSBs, Finance Minister Nirmala Sitharaman had not announced any capital infusion for them in Budget 2020-21 in February this year.

The government, however, is following the process of consolidation of PSBs for the past few years.

It started with the merger of State Bank of Saurashtra with its parent State Bank of India (SBI) in 2008. Subsequently, State Bank of Indore was merged with SBI in 2010.

After an over six-year hiatus, SBI again amalgamated its remaining five subsidiaries State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Hyderabad along with Bhartiya Mahila Bank (BMB) effective April 2017.

In the first three-way amalgamation, Vijaya Bank and Dena Bank were merged with Bank of Baroda from April 1, 2019 to create the third-largest lender of the country.

A mega consolidation exercise took shape beginning April this year. As per the consolidation plan, Oriental Bank of Commerce and United Bank of India were merged into Punjab National Bank; Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank.

Following the consolidation, there are now seven large public sector banks, and five smaller ones. There were as many as 27 PSBs in 2017.

SC wants FinMin, RBI to meet in 3 days to decide on waiver of interest charged during moratorium

The Supreme Court, on Friday, asked the Finance Ministry and the Reserve Bank of India to hold a meeting within three days to decide on the waiver of interest for deferred payments of instalments for loans during the moratorium period announced in wake of the coronavirus-induced lockdown.

The court was hearing a plea filed by a Agra resident on the issue. A bench of Justices Ashok Bhushan, SK Kaul and MR Shah said the question is not of waiver of complete interest for the entire moratorium period, but is limited only to interest charged on interest by banks.

Next hearing

It posted the matter for further hearing next week. During the hearing, the Bench said that it is trying to take a balanced view of the matter, and only wants that wider measures should be adopted. Solicitor General Tushar Mehta, appearing for the Centre, said that he had sought a meeting with the RBI.

The Bench said that if the RBI reply “goes much beyond the query posed by us, there will be a lot of opinions on it”.

Our query is very limited on whether there can be waiver of interest on interest, it said. It asked the Centre to file an affidavit after holding the meeting with the RBI on the decision taken. The Bench was hearing a plea filed by Gajendra Sharma, in which he has sought a direction to declare the portion of the RBI’s March 27 notification “as ultra vires to the extent it charges interest on the loan amount during the moratorium period, which creates hardship to the petitioner being borrower and creates hindrance and obstruction in ‘right to life’ guaranteed by Article 21 of the Constitution of India”.

Sharma has also sought a direction to the government and the Reserve Bank of India (RBI) to provide relief in repayment of loan by not charging interest during the moratorium period.

Seeks FinMin reply

On June 4, the top court had sought the Finance Ministry’s reply on waiver of interest on loans during the moratorium period after the RBI said it would not be prudent to go for a forced waiver of interest, risking the financial viability of the banks.

The top court had said there are two aspects under consideration in this matter – no interest payment on loans during the moratorium period and no interest to be charged on interest.

It had said that these are challenging times and it is a serious issue as on one hand moratorium is granted and on other interest is charged on loans.

On May 26, the top court had asked the Centre and the RBI to respond to the plea challenging levy of interest on loans during the moratorium period.

The RBI, in its reply, has told the top court that it is taking all possible measures to provide relief with regard to debt repayments on account of the fallout of Covid-19, but it does not consider it prudent to go for a forced waiver of interest, risking the financial viability of the banks it is mandated to regulate, and putting the interests of the depositors in jeopardy .

Total no of Infected Bankers have crossed 300 & reached to 301 as of 11thJune.

COVID19 cases in Bankers r increasing exponentially. Total no of Infected Bankers have crossed 300 & reached to 301 as of 11thJune. 28 Bankers have lost their lives in d line of duty to Nation, but ironically

@DFS_India

is still sleeping as we still don't know the exact Numbers!!

Private banks delaying implementation of Rs 3-lakh crore MSME loan scheme: RSS-affiliated body tells FM

 Private banks are dilly-dallying in implementing the Rs 3-lakh crore credit scheme for the MSME sector, RSS-affiliated industry body Laghu Udyog Bharti (LUB) informed Union Finance Minister Nirmala Sitharaman on Monday. Sitharaman had called Laghu Udyog Bharti general secretary Govind Lele to seek feedback on the implementation of Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for the MSME sector, which has been hit hard by the coronavirus-induced lockdown.

Lele said he informed the minister that prominent public sector banks like State Bank of India and Bank of India have started extending loans as per the scheme.

But at the branch level, three-year projections of revenue and profitability are sought before sanction, he said.

"Private banks are dilly-dallying in implementing the scheme. Hence, they are required to be immediately instructed to implement the scheme," Lele told the finance minister.

He said to complete their target, bank officials are giving preference to high-value loan accounts therefore it is important that the government should instruct for proportionate sanctioning of funds in the scheme.

The LUB has urged Sitharaman to include non-scheduled cooperative banks in the scheme as they have a very large number of MSME loan accounts in their portfolio.

The RSS-affiliated body is conducting a survey on the implementation of the scheme, Lele said, adding that it will be done in a week and the findings will be shared with the finance minister.

Sitharaman had last month announced Rs 3 lakh crore collateral-free automatic loan for businesses, including MSMEs, as part of the Rs 20 lakh crore economic package.

The loan would have a four-year tenure with a moratorium of 12 months, she had said.

We are dissuading people from coming to branches: Rajkiran Rai G of Union Bank of India

The coronavirus pandemic has changed the way India’s public sector banks have traditionally done business. With social distancing and risk aversion in real life and financial matters likely to persist in the foreseeable future, Union Bank of India is implementing a series of strategies to return business activity to pre-covid levels. In the latest interview in Mint’s Pivot or Perish series, Rajkiran Rai G., managing director and chief executive officer, Union Bank of India, discusses how the bank is adjusting to the new normal. Edited excerpts:

In what ways is Union Bank of India pivoting with the changed realities brought in by covid-19?

A significant volume of transactions has moved to digital platforms. For instance, the use of mobile apps has increased. We are dissuading customers from coming to the branches. The bank has started a pilot project where customers need not go to the branch for documentation for personal and vehicle loans, and as we move on, we will expand it to other loans as well. Internally, most of the meetings now happen through video-conferencing. Even within the same premises, we do not meet in person but connect virtually. For credit committee meetings, we are going for minimum use of paper and moved most of it to emails. That apart, even the board and board committee meetings happen through video-conferencing.

With the economy gradually unlocking, what is the key change for the bank in the new normal?

Businesses should resume economic activity in the coming months. Accordingly, we envisage a turnaround in credit offtake in Q2FY21 and shall be driven by institutions, particularly micro, small and medium enterprises (MSMEs). Retail credit may take longer to get back to normalcy as we expect risk aversion to kick in among individuals, which could lower discretionary borrowing.

We have incentivized business correspondents by giving them some extra incentives so that a lot of transactions, particularly at rural centres, went through. My feeling is that by July-end or August, we should see about 70% return to normalcy. So, if that happens, then the recoveries can also happen and we may also have to start some recovery efforts from July onwards.

Would public sector banks require fresh infusion of capital from the government to manage the transition?

There are two things to consider here. First is amalgamation and second is the impact of covid-19 on banks’ business. The government has already front-loaded capital infusion last year factoring the amalgamation impact, giving the banks enough buffer. Now, covid-19 is a new development whose complete impact is yet to be seen. We will have to wait till the end of June quarter of FY21 to make any realistic assessment of capital requirement.

How essential is a debt recast package from the Reserve Bank of India?

We have written to RBI seeking a restructuring package. Nothing has been announced so far. Our recommendation is not for a blanket debt recast and we are ready to go by the spirit of the 7 June circular on stressed asset resolution. We are ready to adhere to the circular so that the mistakes that happened earlier are not repeated this time round and there is no kicking the can down the road. Lenders are seeking some amendments like allowing debt recast without downgrading an asset and retaining good promoters. If you see, banks are not diluting the circular but are asking for some amendments in it to cope with the covid-19 situation. It may be difficult to go ahead with debt recast if RBI does not allow it as the provisions needed to be set aside will be huge and could be possible only in a few cases. When there are multiple banks involved, getting consensus from everyone becomes difficult.

What has been your strategy throughout the lockdown?

Since banking is an essential service, we have always been on the job despite the lockdown. At all points in time, more than 90% of our branches were open and only those in curfew areas were closed. We ensured that one-third of the staff were present in the branches so that almost every branch was functional. All ATMs were up and running and we also incentivized business correspondents so that a lot of transactions, particularly at rural centres, went through them.

Do you see the financial system adopting work from home as an integral part of work culture?

The concept of work from home was seldom thought about previously as the banking business has been predominantly brick-and-mortar and oriented towards customer service. Over the past few years, banks managed to adopt new technologies to facilitate “banking from home" for customers. So, employees working from home isn’t far away, but may happen gradually as not every aspect in banking can be managed from remote locations. We still need manpower to provide loans to customers. However, we can expect banks to find ways to transform like they always do.

.Are UFBU going to oppose this move seriously or will they make a "naam ke vaaste" protest. against privatisation of bank

The most unfortunate ,but an inevitable thing is that due to" Corona crisis",bipartite talks are deferred, indefinitely.As the whole country is waging the biggest ever battle to drive out the "evil" Corona virus out of the country,demanding for the bipartite negotiations will be a heartless demand.Fully agreed.The whole banking fraternity of the nation is wholeheartedly involved in discharging its duty to the nation. The bankers have defied the lockdown,and are discharging their duties to the people of our nation,by taking the biggest ever risk,which is still ongoing and no end appears to be in sight.

As of today in our country ,the cocern over potential increase of covid cases rise day by day.It appears that going by the current "spread speed",we may touch 7 lakhs cases by the end June 2020.We are perplexed by the move of the government to privatise the three PSBs,IOB,Bank of Maharashtra and Punjab and Sindh bank.This is the first time PSBs are taken for a ride towards privatization.Just few days back,we saw the statement from our trade union leader,that mega bank mergers are working smoothly.Our leader had also certified that the mergers have happened in a friendly manner.No need to worry.Very nice to hear.

But,now we have a doubt about the way in which our umbrella organisation UFBU is going to react to this "urgent privatisation"move of PSBs in this burning Corona times.Are they going to oppose this move seriously or will they make a "naam ke vaaste" protest.Time alone will unravel the trut

Narasimhan Sivakumar  from fb wall

we don't need retired leader to lead new generation employees. Regards,

From so many years *Bank of Baroda* is led by union leaders who claim themselves leaders of Majority unions are RETIRED from bank's service many years back. Some of them are *Mr.Milind Nadkarni,* *Mr.K.K.Nair and the UFBU chairman AIBEA GS C.H.Venkatchalam.*

These retired leaders are. ONLY responsible for the delayed wage revision, bad Pramotion Policies, Wrong transfer policies etc.

*Mr.Vinod Nikam, G.S OF AIBOBKSENA* is the ONLY working GENERAL SECREATARY in Bank of Baroda. These retired leaders don't know the current problem of employees and also Banking Industry as a whole.

Now we have to throw these retired leaders out from all unions. Hence please vote on below given link.

*https://strawpoll.com/56bkp3hx*

We will unitedly show them we don't need retired leader to lead new generation employees.

Regards,

*One Frustrated Barodian*

Karnataka Bank reports ₹285-cr. fraud

Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of more than ₹285 crore consequent to loans to four entities, including DHFL, gone bad.

A total of ₹285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd. (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd. and Leel Electricals Ltd, Karnataka Bank said.

The maximum is owed by DHFL at ₹180.13 crore, followed by Religare Finvest ₹43.44 crore, Fedders Electric ₹41.30 crore and Leel Electricals ₹20.65 crore, the bank said.

After 11 bank staff die, employees ask govt. for transport, insurance

With at least 11 bank employees losing their lives to COVID-19 in Mumbai and adjoining areas, bank unions have demanded transportation for staff and implementation of safety measures.

In a communication to the Ministry of Finance, the United Forum of Bank Employees (UFBU) — the umbrella body of nine bank unions — said most bank employees working in branches in Mumbai live in the suburbs, and many commute from beyond city limits.

Banks are not providing any conveyance facility to these employees and public transport such as local trains and Metro rail services is shut. BEST bus services have a low frequency, while State transport is not allowing bank employees to use its services, saying they are not covered under essential services.

In addition, the letter said, most banks have discontinued posting guards at the entrance and do not have permanent sweepers, and thus security and cleanliness are also compromised. Banks are unable to regulate customer traffic at the entrance, which has resulted in great risk to employees' lives.

“Further, the government has not extended insurance cover of ₹50 lakh to bank employees on a par with government employees, and different banks are following different policies of compensation in case of death due to COVID-19,” said Devidas Tuljapurkar, convener, UFBU, Maharashtra.

The union demanded that the government arrange safe transportation for employees, and ensure branches are sanitised regularly and entry is regulated. They have also demanded better security arrangements.

It said branches may operate with 50% staff with alternate day attendance and the remaining be allowed to work from home. Employees above the age of 50 and women staffers should be given preference to work from home, as well as employees with diabetes, blood pressure and chronic ailments.

“The employees attending the duties be paid Rs. 1,000 per day as discomfort allowance for the days for which they are attending,” the letter said.

Trade unions call for nationwide protest on July 3 against changes in labour laws and privatisaion

A joint forum of 10 central trade unions have called for another round of nationwide protest on July 3, second in less than two months, demanding immediate halt to changes in labour laws and government’s aggressive privatisation drive. A decision to this effect was taken at the meeting of the central trade unions (CTUs) June 3, 2020.

These unions had last held such a protest on May 22 alleging that the government failed to protect the rights of the workers during the nationwide lockdown ..since March 25 to prevent the spread of Covid-19.

According to the joint statement issued by the unions on Friday, the upcoming protest on July 3 is in preparation and prelude to further united struggle of prolonged non-cooperation and defiance of the government of India through its anti-people, anti-national policies.

The 10 trade unions include Ten central trade unions the Congress-backed INTUC, Left’s CITU and AITUC and others like AIUTUC, TUCC, HMS, SEWA, LPF, AICCTU and UTUC.

Even the RSS -affiliate trade union Bhartiya Mazdoor Sangh has called for a secodn round of nationwide agitation on June 10 of all its units associated with the public sector in protest against the government’s mega privatisation plan. The first such strike of BMS during the lockdown was held on May 20.

Besides, the trade unions have demanded that the government immediately convene the long overdue Indian Labour Conference to dwell upon the 12 point charter of demands, the labour and trade union rights, issues of job losses, wages, job security, the migrant workers’ issues including their journey to home and return journey to those who desire to join back their work, instead of frequently meeting only the employers and corporates organisations.

We reiterate that the central government chose the cover of COVID-19 lockdown to push through its agenda of disinvestment and wholesale privatisation of public sector enterprises,” it said, urging all sections of workers to join the protest on July 3.

 

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Govt 'clear and unapologetic' about privatisation of PSUs: Sanjeev Sanyal

PTI | Updated: Jun 5, 2020, 04.22 PM IST

BCCL

He said that the Essential Commodities Act was considered as the "holiest of holy law and it was one of the 10 commandments" but the government has now changed it.

The government is clear and unapologeticabout privatisation of public sector enterprises as part of reforms, Principal Economic Advisor Sanjeev Sanyal said on Friday. Last month, Finance Minister Nirmala Sitharaman had announced that there will be a maximum of four public sector companies in strategic sectors while state-owned firms in other segments will eventually be privatised. 

This will be part of a new coherent Public Sector Enterprises Policy to be formulated to push reforms in central public sector enterprises (CPSEs), she had said while announcing the fifth and last tranche of over Rs 20 lakh crore 'Amtmanirbhar Bharat Abhiyan' package. 

Talking about the Centre's privatisation drive, Sanyal said, "...we know that privatisation is difficult to do under these circumstances, but we want to be absolutely clear and unapologetic about what we want to do. All non-strategic PSUs (public sector undertakings) will be sold when we can do it. It's not lack of intent that will hold us back." 

He further said that the Essential Commodities Act was considered as the "holiest of holy law and it was one of the 10 commandments" but the government has now changed it. 

"Labour laws and others in 10 commandments, we are going to change it. We are changing it in a very peculiar way. We are actually going to tighten safety and working condition laws. We are actually introducing nationwide minimum wages. So it's not entirely as some people may claim tilted against the labour," he said. 

The government is open to various suggestions including from labour unions to make laws more robust, he said while addressing a virtual AIMA event. 

Earlier this week, the Union Cabinet approved an amendment to the six-a-and-half decade old Essential Commodities Act to deregulate food items, including cereals, pulses and onion, a move that will transform the farm sector and help raise farmers' income. 

The Cabinet also approved 'The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020' to ensure barrier free trade in agriculture produce. 

The government also approved 'The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020' to empower farmers to engage with processors, aggregators, wholesalers, large retailers and exporters. 

Asked about steps to boost demand, Sanyal said the government is cognisant of the situation and as and when need arises, resources will be utilised to support it. 

"I can assure you that we watch this very carefully and will be willing to use whatever space we have. As I said, we have some fiscal space, when we have quite a lot of monetary space. And there are other measures as well that can be thought of. We will do it when necessary," he said. 

Citing an example, he said, a large pipeline of investment in infrastructure projects is planned for boosting demand and creating employment. 

"It is a good opportunity. As we lower the cost of capital and with global capital being as cheap as it is, there is a case for putting together a pipeline of large investment projects. So, there are ways of doing this. Demand is not only about reviving consumption. The investment is an important part of building the cycle," he said. 

Under the privatisation policy, a list of strategic sectors will be notified where there will be at least one and a maximum of four public sector enterprises, apart from private sector companies. 

In other sectors, CPSEs will be privatised depending upon the feasibility. 

The finance minister had last month said the government would announce a PSE policy as a self-reliant India needs a coherent policy. All sectors will be opened to private sectors also. 

"PSEs will continue to play an important role in defined areas. We need a coherent policy because sometimes you open up some sectors in piecemeal... Now we shall define the areas...where their presence will be impactfully felt," Sitharaman had said. 

The policy to privatise public sector companies is expected to give a boost to the government's disinvestment programme. 

The Centre has set a budget target of Rs 2.10 lakh crore from disinvestment in the current fiscal, of which Rs 1.20 lakh crore is expected from CPSE disinvestment.