Slamming the BJP-led Government over its National Monetisation Pipeline (NMP) decision, former Finance Minister and senior Congressman P Chidambaram on Friday demanded an assurance from the Narendra Modi Government that the entire amount of `6 lakh crore, when realized, “will not be used for partly financing the fiscal deficit of `5.5 lakh crore in 2021-22 or for retiring old debts”
Posing as many as 20 questions to the BJP-led NDA Government over the NMP, Chidambaram also sought an assurance from the Modi dispensation that the expected sum of `6 lakh crore would not be merged with general revenues and will not be used for general expenditure.
In a series of other questions on NMP, the former Finance Minister wanted to know if the Government floated a consultation paper on NMP “Did Government consult the workers or the trade unions or other stakeholders before announcing the NMP? When and where did these consultations take place? Will the government make public the outcome or the minutes of these consultations?,” he asked, while speaking to media persons here.
Chidambaram also demanded to know as to why did not the government discuss the NMP in Parliament and asked if the Government proposed to consult the Opposition parties or discuss the NMP Parliament.
Charging that Prime Minister Narendra Modi’s oft-repeated claim of “nothing was done in 70 years” stood exposed, Chidambaram said: “The NMP will wash away what has been done in the last 70 years”.
“The NMP was not announced in the Parliament. It was announced after the session ended. There was no consultation paper. There were no meetings with trade unions. Nor were there consultations with political parties,” he said.
Chidambaram ridiculed Modi by saying that “he is the only Chief Executive in the world who has never interacted with the press”.
“The Prime Minister has in the last 7 years never interacted with the press and in the next three years he would not do so. The Finance Minister (Nirmala Sitharaman) never responds to questions in press conference….for farm bills they have not allowed a debate, on Pegasus no debate took place…and I am sure that they will not allow a debate on NMP also,” the former finance minister said.
“What are the objectives of the NMP? Is the sole objective of NMP the raising of revenue over a four year period?... Certain assets have been identified by the NMP for monetization. What are the criteria applied for the choice of assets?, he asked.
Chidambaram said that under the UPA, certain criteria were adopted upfront for identifying the PSU that would be disinvested or privatized.
“In the case of roads/highways, there is currently a PPP policy. What is the difference, if any, between the model that is in force for such PPPs and the model that will be adopted under the NMP for monetization?,” he wondered.
“If an asset is 'monetized' for, say, 30 or 50 of 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?,” Chidambaram wanted to know.
“Since the NMP is silent on the subject, will the Government stipulate in the contract that the amount of depreciation should be put in a Depreciation Reserve Account which was used only to maintain, upgrade or add to the asset so that at the end of the lease period a valuable asset is returned to the government?,” he asked.
Chidambaram wanted to know if there would be a provision in the contract to prevent asset-stripping by the lessee? “What provisions will be included in the Invitation to Bid (ITB) to ensure that the 'monetization' process does not create monopolies or duopolies in that sector? In particular, what provisions will be included to prevent monopolies/duopolies emerging in the ports, airports, telecom and power sectors?,” he asked.