(LiveMint)
With the Centre lacking resources to provide a large fiscal stimulus to the virus-battered economy, experts recommended pledging of shares of state-run companies with either the Reserve Bank of India (RBI) or a consortium of banks to raise funds, a suggestion that a finance ministry official said the government will explore.
In a Mint column on Tuesday, economist Ajit Ranade proposed that the government pledge its shares of state-run units, including the Life Insurance Corp. of India and Specified Undertaking of Unit Trust of India, with RBI to garner resources amounting to around 10% of gross domestic product (GDP) to finance a stimulus package for the economy that is reeling under the ongoing nationwide lock down. “It’s an interesting idea but it needs thorough examination,” a finance ministry official said on condition of anonymity.
