Modi govt's engagement with public sector is harmful for its fiscal health

The government's method of dealing with BSNL, MTNL and FCI presents a problematic aspect of its public sector engagement

The Narendra Modi government’s engagement with the public sector entities under its administrative control has many layers. Take, for instance, its decision to infuse equity into about 250 operating central public sector organisations including the Indian Railways.

The Modi government infused an estimated Rs 6.26 trillion as equity into these entities during the first five years of its tenure — between 2014-15 and 2018-19. This was almost three times the equity amount that the Manmohan Singh government had infused into these public sector organisations during its five-year tenure — between 2009-10 and 2013-14.

But take a closer look at the