|
Ssc SOCIAL STUDY CIRCLE di
(ESTD 1982) www.dalitindia.com
ssc@dalitindia.com ***************************************************************************************************** |
DELHI CENTER
15-10-2001
SSC News Analysis
PSUs:
Disinvestments
Hindustan Times in its New Delhi
edition on Friday the 28th September 2001, had stated on page fourteen 'Centre
to divest stake in 13 PSUs this fiscal.'
That was at the top in columns two three and four. The 13 PSUs included Maruti Udyog Ltd,
producing the popular Maruti Cars under licence and collaboration, and in
partnership with Messrs Suzuki of Japan.
At the same time there appeared another news in the same page, almost
right below, but in columns six and seven.
That stated 'Suzuki sells entire stake for Rs 9 crore.' That related to the TVS-Suzuki joint
venture, and the reported exit of the Japanese major selling off its entire
25.97% stake. That too at a hefty
discount of 83 percent of market price of the shares. Suzuki sold its six million shares quoting Rs 87.35 per share for
just Rs 90 million, at the rate of only Rs 15 per share. What does these indicate?
Here is a classic case of Collaboration with a
foreign company. Both Maruti Udyog
Limited, a Govt of India PSU and TVS-Suzuki in the Private Sector, were started
as joint ventures with Messrs Suzuki, with a minority participation by Messrs
Suzuki. While Maruti produced the
Japanese Cars, TVs-Suzuki started producing Japanese two wheelers like Scooters
and Mopeds. In fact there are very
interesting stories about how Messrs Suzuki were keen to enter into a
collaboration with the Govt to produce a whole range of two wheelers and four
wheelers. Since GOI confined itself to
produce only cars, Messrs went in search of State Govts for a
collaboration. It is reported that they
had after a lot of study zeroed in to set up a facility in Tamil Nadu, in
collaboration with the State Govt of Tamil Nadu. What really happened, and how they went into the laps of the
private sector Messrs Sundaram Clayton, may never come out authentically and
officially.
GOI, in its wisdom allowed Messrs Suzuki, to
pick in bulk the Govt's Shares and come almost at par with Govt. They were given a bulk of Govt's Shares at
throw away prices. Suzuki held 50% of
the Shares, and the Govt held the remaining 50% - 49.5% as its share and 0.5%
on behalf of the Employees that were earmarked for the employees to pick up
later. Then they were talking of giving
to Messrs Suzuki a further bulk of GOI Shares.
The idea, GOI had been saying is not to benefit, but to make the Indian
Venture Maruti a great success. Whom
are they kidding? Whom they are trying
to fool? Perhaps, yes perhaps, no one
really knew! For the Govt, Opposition,
Political Parties, Unions, Intellectuals, Academicians, Economists, Lawyers,
Jurists, Courts, the Judges, and the Press all had kept quiet, save for some
protest remarks here and there for the sake of record. Now the same Govt, has decided to sell away
its equity. What does that mean? Again our untrustworthy Govt, Opposition,
Political Parties, Unions, Intellectuals, Academicians, Economists, Lawyers,
Jurists, Courts, the Judges, and the Press will keep quiet. And the People and workers of Maruti will
also keep quiet, even while the Marwaris and other financiers, Indian and Multi
National Corporations and Business try to swallow Maruti and other 12 PSUs.
What is the truth? What are the real truths?
What are the real intentions?
What are these dramas all about?
Govt, Opposition, Political Parties, Unions, Intellectuals,
Academicians, Economists, Lawyers, Jurists, Courts, the Judges, and the Press
will all keep quiet. Whom are they all
trying to fool? And most importantly
why are they all archestrating so much to fool the poor people of India? While both Maruti and TVS-Suzuki had started
almost at the same time, the PSU Maruti is being given up by its trustee the
GOI to the collaborator, or any other compradore agent or to some Indian or
International MNC or group of MNCs; the private sector Sundaram-Clayton is
pushing out the Japanese Collaborator.
What does this indicate? Is it
that Sundaram-Clayton is more strong, powerful, honest, forthright,
professional, business like, enterprising, aggressive and more capable than the
GOI? Or is it that GOI is wise in
giving up, palming away, selling off and bartering out its asset; and Messrs
Sundaram-Clayton are just simple fools and plain stupid idiots to push away its
partner and take over the entire venture?
Who is right and who is wrong?
Which model of Business is right?
Why a Share worth Rs 87.35 in the market is
being sold by Messrs Suzuki for just Rs 15 to Messrs Sundaram-Clayton? Is there any benami transaction, or FERA
violation, or any other form of hidden or secret agreement, or underhand
deal? Or are the market prices are just
there to fool the Public? Or, is it
that all the above are true?
PSUs are many types? State and Center. Those that began as a PSU, a Govt Unit converted into a PSU for various or ulterior motives. Those that were started by the private, mismanaged and taken over by the Govts as PSUs. And those that began as a British Company, handed over to or taken over by the Indian business communities and industrialists, who sucked every pie out of it without making even the bare investments to keep the companies healthy and alive. To avoid the resultant collapse, GOI had first taken over their management, infused life into them, ploughed in new investments, made them strong and later took them over as regular PSUs. Companies like Indian Iron were thus taken over from Big Industrial and Business Houses like Birlas. But why then the same Govt is thinking of handing over the same and other PSUs to the same or other Indian Industrial and Business Houses, or Indian and Foreign MNCs and Amalgamations? Is it that under the last 54 years of successive brahmin Govts, or during the tenure of the present Govt some of the private Industrial and Business Houses have become more resourceful and richer than the whole Govt of India. It is either shameful, or untruthful fraud and cheating, or there is a big catch plan or deceit behind it.