NDA government created loot of public sector undertakings: Congress

Since BJP-led NDA was an opportunistic alliance, it had no workable agenda for development, increasing employment or bringing much need administrative reforms.  It had not sense of direction. It started selling out national assets to raise finance. The Centre raised Rs.11,260.23 crore from the sale of 31 PSU’s, including 18 hotels of the Indian Tourism Development Corporation and 3 of the Hotel Corporation of India, since the sale of Modern Foods in January 2000. 39 PSU’s were sold in 10 states. Most of these PSUs were sold to 'favourites' of the Vajpayee Government. The erstwhile Disinvestment Commission had specifically warned against the option of bridging the budget deficit by raking in money from disinvestments. On the contrary Disinvestment Commission wanted the proceeds of disinvestment to be used for financing infrastructure, restructuring of loss-making PSU’s or for retiring public debt. That was the policy followed by the previous Congress governments. But BJP-led NDA government reversed that.  The most blatant cases of erosion of public money through disinvestment were BALCO, HUDCO, Centaur Hotel.

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