Asset monetisation scheme daylight robbery: Chidambaram

Chidambaram said the Konkan Railway is among the assets that the Modi government plans to monetise under the policy. Pic/Konkan Railway

Former finance minister P Chidambaram said the national monetisation pipeline scheme is a daylight robbery and scandal involving the Narendra Modi government. He said that the Centre would end up creating a monopoly of a select few over the assets that have been built over the past 70 years.

Chidambaram addressed a media conference on Friday at the Mumbai Congress head office. He said the Congress-led UPA did not privatise core assets and followed certain criteria for disinvesting. "It's a daylight robbery and a scandal. The Konkan Railway and Mumbai-Delhi freight corridor will be up for sale. Under the UPA government, railways were identified as a strategic sector. Has the government decided railways will no longer be considered a strategic sector?" asked the Congress leader, urging the people to be aware of this danger and protest against the upcoming policy.

The Centre has announced a four-year National Monetisation Pipeline worth an estimated Rs 6 lakh crore. The Centre proposes to transfer the revenue rights to private parties for a certain lease period, but will keep the ownership. The funds earned through this will be used for creating infrastructure in the country. He said the Modi government has admitted through the scheme that big assets have been created in the past 70 years, by the Congress and other governments. "The [BJP] government has been saying nothing has been done by others including the Vajpayee government in the country before it came to power [in 2014]." Chidambaram asked the Modi government 20 questions. "What are the criteria applied for the choice of assets? If an asset is ‘monetized' for, say 30 or 50 years, what is the value of the piece of paper that declares the government to be the ‘owner' of the asset? What kind of asset does the government expect will be returned at the end of the period? Will it not be a fully depreciated asset worth practically nothing?" the ex-FM asked.

Chidambaram (centre) with party colleagues Ashok Chavan (left) and Nana Patole addresses the media at the Mumbai Region Congress Committee office at Azad Maidan on Friday

He said the Modi government did not debate the policy and announced it outside the Parliament. "They will not allow discussion in the upcoming sessions as well. Will there be a provision in the contract to prevent asset-stripping by the lessee?" he further asked.

Chidambaram saw a design to encourage private monopolies in India when countries like the United States, South Korea and China are trying to control monopolies and duopolies. He wondered whether the lessee would be obliged to maintain the current employment and continue with job reservation if the quota policy currently applied to the asset. He asked whether the lessee would be exempted from regulation.

He wanted the government to clarify and assure that the entire amount of R6 lakh crore, when realised, will not be used for partly financing the fiscal deficit [Rs 5.5 lakh crore in 2021-22] or for retiring old debts. "Will the government make public the outcome/minutes of these consultations? Did the government discuss the policy in Parliament and, if not, does the government propose to consult the Opposition parties or discuss it in Parliament?"