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Somesh Jha

24 Mar, 10 tweets, 5 min read

Scoop: The Modi government’s push towards privatisation—the strongest India has seen in many years—faced resistance from key ministries within the administration.

Beginning today, we will tell you the story of 'The Privatisation Files.'

Read here: bloombergquint.com/business/priva…

The privatisation policy, which was announced in the Budget, has divided sectors into strategic and non-strategic. While the govt will keep “bare minimum presence” in strategic sectors, all firms in the non-strategic sectors will be considered for privatisation/merger/closure.

There were major concerns/apprehensions/suggestions given by various ministries during the consultation process which went on for months. Some of them I will highlight in this thread. BloombergQuint has now accessed these documents through the RTI Act.

bloombergquint.com/business/priva…

The Defence Ministry in its letter, which was approved by Minister Rajnath Singh, said that defence manufacturing should be fully under state-owned entities “in the interest of national security” as they are “critically important”.

bloombergquint.com/business/priva…

However, the disinvestment department made it clear in its response that the new policy will encourage private sector participation across all sectors, which will lead to "infusion of private capital, technology, innovation and best management practices.”

bloombergquint.com/business/priva…

In a letter, approved by Minister Pralhad Joshi, the Coal Ministry pointed out that Coal India Ltd. has been facing industrial relations issues “in response to commercial mining, etc, which is affecting coal production adversely.”

Some Ministries wanted their sectors to be 'strategic'. One of the most comprehensive responses, making this argument, came from the Ministry of Shipping. It prepared and sent a 30-page report on the subject.

Read an extract of what they had to say: bloombergquint.com/business/priva…

The new privatisation policy was announced at a time when the world was grappling with the first wave of the #Covid19 pandemic. Yet, the govt didnt make healthcare 'strategic'.

This was opposed by the Health Ministry, which sent a letter approved by Minister Harsh Vardhan.

The government was conscious of the resistance it may face in implementing the policy. The Department of Economic Affairs suggested companies can be "brought under" disinvestment department's control to "overcome" this. This was not accepted, however.

bloombergquint.com/business/priva…

Read this and many more in the first part of our 'The Privatisation Files' series.

bloombergquint.com/business/priva…

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More from @someshjha7

Somesh Jha

@someshjha7

12 Jan

Exclusive: The government plans to introduce grandfathering provisions under the labour codes to ensure that the gratuity outgo for companies does not significantly rise after the new law comes into effect from the next fiscal (2021-22)
bloombergquint.com/economy-financ…

This after concerns were raised that some of the new provisions in the labour laws for computing wages and gratuity will bump up costs for companies.

After the new labour codes come into effect, likely from April 1, the way companies structure employee salaries will undergo a significant change. The salaries will have to be structured in a manner so that all the monetary allowances are capped at 50% of the wage of an employee.

Read 5 tweets

Somesh Jha

@someshjha7

16 Dec 20

A personal update: Monday was my last day at Business Standard and I can truly count the past 3 years as the golden phase of my career, where I got the opportunity to not only report but also break some of the biggest news stories during this period.

@BloombergQuint

From January, I will be writing for the @BloombergQuint.

Even though I will miss the adrenaline rush of finding my byline in the paper every morning, I am really excited about starting a new journey with a digital platform.

@bsindia

In this thread, I am sharing some of the work that I did at @bsindia, which is close to my heart.

Read 26 tweets

Somesh Jha

@someshjha7

7 Dec 20

Breaking: India's chief economic advisor wants the junked consumer spending report to be made public. Krishnamurthy Subramanian wrote to the National Statistical Commission seeking the survey report of 2017-18 for analysis in the upcoming Economic Survey.

business-standard.com/article/econom…

Consumer spending fell for the first time in more than four decades in 2017-18, primarily driven by slackening rural demand, sparking fears of rising poverty in the country. The government withheld the report which was made public by us in November, 2019:

business-standard.com/article/econom…

The day the survey results were made public by us the government announced scrapping of the survey report citing 'data quality issues.'

This was the first time the govt scrapped an NSSO survey of this scale since the stats body was established in 1950.

business-standard.com/article/econom…

Read 10 tweets

Somesh Jha

@someshjha7

12 Oct 20

Thread: Instead of hiking retrenchment compensation for workers, the Modi government has mooted a reskilling fund in the new labour codes.

Retrenched workers will get cash benefits to the tune of 15 days of their last drawn salary. But here's the catch.

Retrenched workers who take cash benefits from the new reskilling fund mooted in the labour codes may have to show proof of reskilling to the government.

But the story doesn't end here...

business-standard.com/article/econom…

If workers are unable to reskill within a fixed period of time, they will have to RETURN the money given to them by the government, according to a proposal being contemplated by the central government. Moreover, the workers may be asked to pay back an interest, too.

Read 7 tweets

Somesh Jha

@someshjha7

5 Oct 20

Work in the private sector? Thanks to the Modi government, your company can now convert your permanent job into a fixed term contract and take away your retrenchment benefits.

Read our story:

business-standard.com/article/econom…

While the farm Bills created a lot of controversy, contentious labour law changes had no-takers.

The government quietly did away with a key safeguard norm for workers to deter firms from converting existing permanent jobs into fixed-term contracts.

Why is this proposal dangerous?

In India, unlike in China, Vietnam and Indonesia, there will be no cap on the number of times fixed-term contracts can be renewed (companies can do it endlessly).

Fixed-term contracts are seen as stepping stone towards permanent jobs.

Read 9 tweets

Somesh Jha

@someshjha7

2 Oct 20

Just in: Ten central trade unions (which does not include RSS-affiliated Bharatiya Mazdoor Sangh) to go on a one-day nationwide strike on November 26 against labour codes and new farm laws.

Demands of trade unions:
*Cash transfer of Rs 7500 a month for all non-income tax paying families
*10 kg free ration/person a month to all needy
*Expansion of MGNREGA to provide 200 days’ work in a year in rural areas at enhanced wages; extension of employment guarantee to cities

*Withdraw all farm laws and labour codes
*Stop privatisation of public sector
*Withdraw the circular on forced premature retirement of government employees
*Provide pension to all, scrap NPS and restore earlier pension, improve EPS-95

Read 4 tweets

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