Relevance for Banking, SSC & RBI Grade B exams: Economy
A parliamentary panel has sharply criticised the Centre’s approach towards disinvestment of fertiliser public sector undertakings (PSUs), terming the government’s response to its recommendations as inadequate. The Standing Committee on Chemicals and Fertilisers, in its action-taken report tabled in Parliament, noted that only four of its 18 recommendations were satisfactorily accepted, while replies on 11 were found lacking, prompting the panel to restate its concerns. Committee chairperson Kirti Azad highlighted the deteriorating quality of government responses, stating that for the first time in his tenure, the administration was failing to provide timely and responsible replies to parliamentary scrutiny. The panel’s sharpest critique centred on the government’s continued push for disinvestment despite unresolved questions over whether the fertiliser sector should be classified as “strategic,” raising concerns about food security and the future of state-owned units.
The report also flagged gaps in long-term planning, noting that disinvestment processes were advancing without a comprehensive assessment of India’s fertiliser requirements, as recommended by the committee. It questioned the lack of interim measures to safeguard PSUs until a decision on strategic reclassification is finalised and criticised the government’s delayed or incomplete responses on restructuring legacy debt of companies like FACT and MFL. Additionally, the committee pointed out that while the Cabinet approved a new ammonia-urea complex in Assam, broader recommendations for a nationwide modernisation programme for ageing plants remained unaddressed. The panel’s observations underscore the need for a more structured and consultative approach to disinvestment, particularly in sectors critical to national security and self-reliance, making it a relevant topic for aspirants preparing for banking, SSC, and RBI Grade B exams, where questions on government policies, disinvestment, and parliamentary oversight often feature.
Source: Hindustan Times
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