Vedanta Group chief Anil Agarwal reiterated his stance that the government should ‘corporatise’ key public-sector undertakings, a move he said would make them become more efficient, helping boost production and reducing dependence on imports.

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“The government has no business being in business,” Agarwal told CNBC-TV18, repeating his oft-quoted line that was also used by PM Modi after he came to power.

That does not necessarily mean the government should privatise PSUs, said Agarwal, whose mining behemoth Vedanta has a track record of successful acquisitions of PSUs such as Hindustan Zinc and Balco.

“They can also be corporatised,” he said, which generally translates to freeing PSUs from regulations that specifically bind them, empowering their managements and boards, and possibly cutting stake in them through listings. “Corporatisation brings a lot of efficiencies where shareholders can ask questions and

“India is blessed with minerals and coal in abundance and it is time to implement reforms to ensure enhanced production and save forex outgo by curbing imports,” he said.

Agarwal drew a comparison between Hindustan Zinc and PSU Hindustan Copper, which has a virtual monopoly on copper production and yet has been struggling for years.

“Hindustan Zinc was at the same level

Agarwal added that instances of shutting of mineral production should be avoided, such as what happened in Goa (after a court banned mining in the state) or when Vedanta’s own Tuticorin copper smelter was shut down in 2018 following violent protests.

In the wake of heightened India-China tensions following the clash between soldiers at Galwan Valley, Agarwal had tweeted on June 17, saying a lot of power equipment in India was imported from China even BHEL was “capable of producing the best power plants in the world”.

Most of the power plants in India are imported from China. BHEL, a PSU, is very capable to produce the best power plants in the world. If given full autonomy and either corporatized or privatized, without laying off any personnel, it can do wonders for #atmanirbharIndia.

— Anil Agarwal (@AnilAgarwal_Ved) June 17, 2020

The tweet was interpreted by some as an indication that Vedanta would be interested in buying BHEL should it be put up on the block. But Agarwal dismissed the speculation.

“I made a general comment from my experience working with BHEL. It is one of the best power equipment producers and can develop a lot of capabilities if given support,” he said. “I am in the natural resource sector and would like to remain focused there.”

Vedanta also owns Sterlite Technologies, which makes fibre optic and other connectivity solutions, and Agarwal said the company would looking at expansion to help boost the country’s e-infrastructure.

First Published:Jun 19, 2020 4:36 PM IST