CM Satheesan rules out privatisation of PSUs, mineral sands in Kerala

Chief Minister V D Satheesan on Wednesday rejected allegations that the state government was planning to privatise public sector enterprises or Kerala's mineral sands sector, saying there was "not a single proposal" to that effect in the Budget. Replying to the three-day debate on the state Budget in the Assembly, the chief minister said the government remained committed to strengthening public sector institutions through reforms rather than privatisation. "We are not going to privatise a single public sector enterprise. Not one. Where is such a proposal written? It is not in the Budget," he said.

Satheesan said discussions and claims circulating on social media and in the media had no basis in the Budget document. Instead, the government's focus was to make public sector undertakings financially stronger and self-sustaining. Referring to the Kerala State Road Transport Corporation (KSRTC), he said the government had extended financial support worth thousands of crores of rupees and would continue reforms to improve its viability. He also said the Civil Supplies Corporation would be modernised through better supply chain management and procurement systems to make it profitable without relying on continuous government subsidies.

The chief minister also dismissed claims that the government intended to privatise Kerala's mineral sands resources. "Some are claiming that we are going to privatise Kerala's mineral sands sector. Where in the Budget does it say that? Show me where it states that mineral sands will be privatised," he said. The CM explained that the reference in the Budget was part of the proposal for the Southern Kerala Economic Corridor, which aims to attract investment and strengthen strategic and maritime-related industries, but does not mention privatisation of mineral resources.

Satheesan reaffirmed the government's earlier stand on critical minerals and said there had been "no change" in policy and "no U-turn." According to him, the proposed Critical Mineral Corridor would be implemented through a consortium of Central and State public sector undertakings, including Coal India Limited, Kerala Minerals and Metals Limited (KMML), Keltron, Travancore Titanium Products Limited and the National Mineral Development Corporation (NMDC). "There is no private investment in the consortium, and there is no mining involved. The focus is on value addition to existing materials," he said, adding that the initiative was expected to generate significant economic returns while remaining entirely within the public sector framework. Rejecting allegations of a policy reversal, the chief minister said stories about the government moving towards complete privatisation of mineral sands were "simply not true" and reiterated that the state's position on the issue remained unchanged.