PSU disinvestment

Sir, - Your article `Selling the family silver?' (Sunday Magazine, Nov. 25) by Sushma Ramachandran regarding the disinvestment scenario: During the last decade, the Government's intent on setting up new industries has diminished and it seeks to privatise or disband the public sector. Unfortunately, almost all the PSUs are dubbed inefficient or a drain on the exchequer.

Especially after the 1956 industrial policy resolution, the Government was keen on entering each and every field of industrial activity though the resolution specifically earmarked certain industries or businesses for the public sector.

The original focus was on heavy, basic and infrastructure industries which needed huge investments and long gestation periods. Thus, Jawaharlal Nehru visualised establishing steel plants, power generation projects, dams, airports, expansion of Railways, heavy machinery manufacturing industries, shipping etc.

He never thought that these public sector institutions would become pawns in the hands of politicians, bureaucrats and trade unions.

The PSUs which are really a drain on the exchequer remain so, while others which are profitable are sought to be sold. Here again, pressures from different quarters are blocking the disinvestment process. The ruling party, the Opposition and trade unions are pulling in opposite directions, driving away the potential investor.

G.M. Rama Rao,

Visakhapatnam

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Section  : Opinion
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