Action Plan

1. 1. The number of Public Sector Units (PSUs), both Central and State that are ‘Sick’ as on date, should be determined.
   2. The salary, health, travel, pension and housing and administrative costs of such PSU’s should be compared to similar Companies in the Private sector both in India and abroad, as Indian private sector Companies are also, man power bloated due to lesser productivity when compared to the efficient and productive Companies in the same sectors abroad.
   3. It is by forcibly disinvesting in the ‘Sick’ PSUs, and compelling the employees to take one to three years’ salary as a Voluntary Retirement Scheme (VRS) and using the thus saved subsidy and unlocking the asset value now locked up in ‘Sick’ PSUs and as salary and perks amounts properly, that it is proposed to eradicate all poverty from India at one stroke.
   4. Tenant Farmers cultivating less than one hectare of agricultural land could also, be included in the poor category and be allotted shares in the Mutual Fund (MF) or PSU to the value of Rs. 3.0 lakhs like other poor people, However, any loan waiver amount, if availed by them, will be deducted from the value of such shares. This will only be fair to those other farmers, who in similar circumstances, did not avail any loan waiver but paid off their loans themselves.
   5. Other poor and marginal farmer’s needs are addressed in a different scheme- (See-”Agricultural Reforms – Krishi Jagruti Scheme-Own your Farm as a Share Holder”).
   6. It is proposed that all the assets (land, housing, machinery, Brand value etc.) of all such PSU’s both Central and State be properly re-valued at the current Government rates and the current share value arrived at. The actual market rates would easily be about 3 times that, and therefore the PSU’s be offered for sale at the base rate of atleast three times the Government rate on terms as below. Already ONE lakh then becomes THREE lakhs;
   1. 49 percent of the shares be offered to the Private Sector Purchaser,
   2. Two percent of the shares to be held by the respective Government, which will also, hold a Directors post on the Board of the Company, to prevent misappropriation of the properties.
   3. Balance 49 percent of the shares to be allotted to any of the two or three specially set-up Financial Institutions (Fl’s) for this purpose. Each Fl can hold shares of two or more such companies and of course trade its own shares on the stock exchanges.
   4. Such F. I’s will allot in turn, its shares equal to Rs. 3.0 lakhs in favour of every poor family in India with ‘Aadhaar’ linked Bank Account. The poor should be defined as only those families that are subsisting on daily wages and who own NO asset. These shares will be their asset in the Concept of India and now they will have something to fight for, and this will give them the head start they need. If the values allow, the next level of the poor can also, be added in as deemed fit. The shares should be allotted jointly in the name of both the wife and husband with the wife’s name first to encourage gender equality and recognition of the wife’s contribution to the family. The shares should blocked in for a period of five to ten years to prevent exploitation, and even then, the Wife’s informed consent before a relevant Authority should be obtained for any sale or mortgag.
   5. When the value of the share in the disinvested PSU becomes multiplied a further FIVE times over, as can be expected in the next three to five years, the Government share of two percent will be sold to the Private Investor at this enhanced price. The Fl’s may then also, sell their shares back to the Company if it so desires. By then the original ONE lakh Government value of the share of the individual will then be at least Rs. 15.0 lakhs and the shareholder would have been getting dividends thereon all these years, enabling her to understand the value of equity. This meets the alleged promise made the PM is assumed to have made in his earlier election campaign of putting Rs. 15.0 lakhs into each poor person’s account. Though directly, from the money that comes back into India’s share market. That too without infusing any more money than that already locked in and that given as subsidy to the ‘Sick’ PSUs each year.
   6. Payment of Dividend every year after the end of the second year must be ensured. Ofcourse, if the scheme can be subsidized a little more, then the dividend can even be paid out at the end of the first year itself.
   7. The F. I’s shares can be permitted to be used as collateral for a loan to the shareholders of up to 50 percent of the market value, as determined by the Auditors, after the first year, through the F.I. or the M.F or a Bank which will be responsible to certify and verify the end use.
   8. The shareholder in the F. I’s can opt to sell her share after the lock in period of five to ten years on the Equity Exchange. This period would be long enough to allow her to understand and appreciate the concept of long-term investment in the Stock market and not be taken for a ride by other unscrupulous traders / investors.

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