Relevance for Banking, SSC & RBI Grade B exams: Economy

A parliamentary panel has criticised the Centre for its inadequate response to its recommendations on the disinvestment of fertiliser public sector undertakings (PSUs), raising concerns over food security, modernisation of ageing plants, and the future of state-owned companies. The Standing Committee on Chemicals and Fertilisers, in its action-taken report tabled in Parliament, noted that the Department of Fertilisers had only satisfactorily accepted four of its 18 recommendations, while replies to 11 were deemed insufficient. Committee chairman Kirti Azad highlighted a decline in the quality of government responses, stating that departments now fail to take responsibility or provide timely replies, unlike past practices. The panel also questioned the government’s continued push for disinvestment despite unresolved debates over whether the fertiliser sector should be classified as “strategic,” urging an updated status on the proposal and interim safeguards for PSUs until a decision is finalised.

The committee’s sharpest criticism centred on the lack of a long-term assessment of India’s fertiliser requirements before proceeding with disinvestment processes, as it had earlier recommended. It reiterated the need for a detailed study covering production capacity, consumption trends, import dependence, and feedstock security before any decisions are taken. Additionally, the panel faulted the government for merely “noting” recommendations on restructuring the debt of FACT and MFL without indicating concrete steps. The report also highlighted the absence of a nationwide modernisation programme for ageing urea plants and the failure to address revival plans for closed units like Haldia and Durgapur. For banking and SSC aspirants, this underscores the importance of understanding government policies, parliamentary oversight, and the economic implications of disinvestment, while RBI Grade B candidates should note how such fiscal decisions impact inflation, food security, and public sector reforms.

Source: Hindustan Times

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