- Minimum government, maximum governance was the tagline adopted by the National Democratic Alliance (NDA) when it first assumed office in the Parliamentary elections in 2014. The Prime Minister was vociferous in advocating the lesser interference of the government in matters related to governing the country indicating thrust on the efficient deliverance of governance in line with the aspirations of the people. One of the few areas identified requiring the government to let go of its control in running the machinery effectively was to push ahead with privatization and disinvestment measures releasing the public sector units from the regulatory clutches yielding little vis-à-vis effective functioning as well as profit-making.
PC: Romy Hughes
- The jury is still out as to how much the ruling dispensation can lay claim to having achieved the stated objective all these years. Nonetheless, there is a renewed effort at ensuring many of the public sector units are privatized as the loss-making entities certainly deserve a fresh infusion of ideas, capital, heft, new technology, innovative management practices, and for creating dynamism in the country’s economy. As part of the move, the recently presented Budget by the Finance Minister firmly spelled out plans to proceed further with the privatization measures.
- This point was reiterated by the FM this weekend at The Economic Time Awards for Corporate Excellence making communication an important channel to steer expectations. It is stating the obvious when the government’s economic rationale behind the privatization program is to improve the productivity of the firms it intends to sell. The idea behind such a move is to transform these firms into more competitive ones on the lines of successful private entities by adopting modern means available to excel. One of the most visible consequences of the process is bound to be reflected on the job’s scenario reviving these firms rather than looking at as liquidating them.
PC: Brad Hodgson
- It is but natural for the employees of these PSUs/firms to be apprehensive as well as feel anxieties about the existing commitments the government made. True to her word, the FM did clear the air in no uncertain terms by emphasizing that all commitments made earlier to the employees will be fulfilled. Assurance coming from no less than the FM would go a long way in mitigating the opposition to privatization measures thereby allowing for a smooth transition in days to come. As you are aware, there are any number of loss-making PSUs viz, airlines, and banks amongst the lot whose continued non-progression has left the government with no choice but to go ahead with privatization.
- Thus, the need of the hour is to shift focus and thrust to healthcare and education as the resource-starved government cannot continue to pump investments into public-funded entities perpetually. The private sector must gain prominence in the larger interest of the nation’s economy which can be achieved when the government lets go of its unyielding control on a few PSUs which are proving to be nothing but white elephants draining the exchequer. Yes, privatization is the way forward and should be taken to its logical conclusion.
