Shape up or shut down, Arun Jaitley tells PSUs

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The government on Tuesday said that four public sector companies, which cannot be revived will be shut down and finance minister Arun Jaitley asked others to shape up to deal with free competition in an era when state-run firms had lost monopoly rights and preference, marking a clear shift in the Centre's policy.


In case of seven others, Jaitley told Parliament, the government is trying to revive seven ailing PSUs via disinvestment and the joint venture route. The FM's stern statement means the government is ready to bite the bullet on controversial reforms to repair public finances and put the economy on a higher growth trajectory.
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On Tuesday, Jaitley urged PSUs to learn to function like private business houses in a competitive environment. "The PSUs must learn how to function like any other business organization in a competitive environment and should not be run like a government department," he said while replying to supplementaries in the Rajya Sabha.


Management of loss making PSUs have to be part of market economy, the minister said. The government has also lined up an ambitious asset sale programme and aims to raise over Rs 63,000 crore by selling stakes in state-run firms. It has also outlined the need to provide managerial autonomy to blue chip PSUs to compete globally.
Shape up or shut down, Arun Jaitley tells PSUs - The Times of India

 

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Making PSUs function under the system is almost impossible. To start with Nehru should take the blame of pushing a national without vision. After independence, he thought, we Indians need a companies act for taking care of business in India. But he was always under influence of leftist idealogy and went with Russian advice - business will be done by government (from making stoves to running hotels, government will do the business). With this in mind, when the babus drafted a Act, they know that they are going to be managers (govt the shareholders), if something goes wrong or if we don't perform, nothing should bite me back. We had a wonderful piece of legislation where the people running the show is never answerable for anything. Within 20 years, PSUs crumbled - there enters one Manmohan Singh who released the economy. This man should have possessed the brain to first change the companies act to accomodate private businesses then allow FDI etc. All private parties entered the scene to do business with a law primarily safegard their misdeeds !!! From 1991 to 2000, scams after scams came out but no one will go to jail or pay for swallowing public money or government property (including payment of taxes)... Now we have a law which is other extreme. A person who invest and run the business will heave less say that ""independent directors and government rules"" !!! With this piece of legislation, whether Jaitley likes it or not, no IAS officer will sit on the board or take any decision (if something goes wrong, he will solely become responsible and will be in jail for rest of his life fighting in court cases) - so DON'T TAKE ANY INTEREST OR RISK.... Poor Jaitley, inherited a system like we say in tamil : Dog with a coconut !!!

 

[tbs]

The government on Tuesday said that four public sector companies, which cannot be revived will be shut down and finance minister Arun Jaitley asked others to shape up to deal with free competition in an era when state-run firms had lost monopoly rights and preference, marking a clear shift in the Centre's policy.


In case of seven others, Jaitley told Parliament, the government is trying to revive seven ailing PSUs via disinvestment and the joint venture route. The FM's stern statement means the government is ready to bite the bullet on controversial reforms to repair public finances and put the economy on a higher growth trajectory.
.......................

On Tuesday, Jaitley urged PSUs to learn to function like private business houses in a competitive environment. "The PSUs must learn how to function like any other business organization in a competitive environment and should not be run like a government department," he said while replying to supplementaries in the Rajya Sabha.


Management of loss making PSUs have to be part of market economy, the minister said. The government has also lined up an ambitious asset sale programme and aims to raise over Rs 63,000 crore by selling stakes in state-run firms. It has also outlined the need to provide managerial autonomy to blue chip PSUs to compete globally.
Shape up or shut down, Arun Jaitley tells PSUs - The Times of India

hi

gift of congress to the nation....last 60 yrs..they looted in many ways....modern bread factoy is an example....bread

business is not a govt job....private companies are doing well in bread business...in the name vote bank politics....

we lost/spoiled many things....