Shelve plan to sell PSUs in State: KTR to Centre

Hyderabad: Industries and IT Minister KT Rama Rao has demanded the Union government to withdraw its plans to sell assets, including land allotted to different public sector undertakings (PSUs) in Telangana. Instead, he suggested the Centre explore possibilities of reviving and strengthening the PSUs.

"If it is not feasible then the State government should be given an opportunity to set up new industrial units in such lands," KTR said. He shot off a letter to Union Finance Minister Nirmala Sitharaman stating that the Centre's plan to sell PSUs was nothing but making a mockery of the State government's rights.

KTR pointed out that many States, including Tamil Nadu, were strongly opposing the Centre's move to sell PSUs set up in their respective territories. He appealed the government to reconsider such plans, failing which the Telangana government will strongly obstruct the moves.

He lashed out at the Centre for its attempts to sell PSUs in the guise of disinvestment. He sought to know under what provisions or rights, the Centre was planning the sale of PSUs set up in different States. "It is unfortunate that the Modi government did not provide job opportunities to unemployed youth. If PSUs are reopened, they will provide direct employment to thousands and indirectly millions will be benefited, KTR suggested.

He said the government was selling Hindustan Cables Ltd, Hindustan Florocarbons Ltd, Indian Drugs and Pharmaceuticals Ltd, HMT, Cement Corporation of India Ltd (CCI) and Ordinance factories in Telangana as part of its disinvestment plans. In the past, the State governments had allotted about 7,200 acres to these six companies.

According to the government estimates, the value of these lands would be nearly Rs 5,000 crore. As per open market prices, the value could be over Rs.40,000 crore.

He said the State government had allotted lands to these companies at marginal prices and in a few cases, they were offered free, since setting up of the units would generate employment to local people, besides facilitating industrial development.

KTR said the State government was recognising physical assets of PSUs, which the Centre wanted to sell, as people's right. In the guise of disinvestment, the Centre's move to sell the assets would tantamount to selling Telangana assets, he pointed out.

When the Telangana government urged allotment lands for construction of Skyways to improve transportation in Hyderabad, he said, the Centre demanded compensation as per market price. "In this context, how can the Central government sell lands that were allotted by State for setting up PSUs," KTR questioned.

The Centre also sidelined the implementation of assurances made to Telangana as per the Andhra Pradesh Reorganisation Act, the minister stated.