India News Live Today October 7 2024: What is Govt's Intention Behind Selling Profitable IMPC?

Image

The Indian Metals and Ferro Alloys Limited (IMPC) is a public sector undertaking (PSU) under the Ministry of Steel. It is one of the leading producers of ferro alloys in India, with a market share of over 50%. The company has been profitable for the past several years, and its net profit in 2023-24 was Rs. 1,000 crore.The government's decision to sell IMPC has been met with criticism from various quarters. Critics allege that the move is part of a larger plan to privatize profitable PSUs, which will ultimately lead to job losses and a decline in the quality of public services. They also argue that the government should focus on strengthening PSUs rather than selling them off.The government, on the other hand, has defended its decision, saying that it is necessary to raise funds for infrastructure development. The government has set a target of investing Rs. 100 lakh crore in infrastructure over the next five years, and it plans to use the proceeds from the sale of IMPC to fund these projects.The sale of IMPC is likely to be completed by the end of the year. The government has invited bids from interested parties, and the highest bidder will be awarded the contract.The sale of IMPC is a significant development in the Indian economy. It is the first time that the government has sold a profitable PSU in recent years. The move is likely to have a ripple effect on other PSUs, and it could lead to a wave of privatizations in the coming years.

Up Next