There is no doubt Murasoli Maran is determined to push through the reform process. He has not let the strains on the government impede necessary efforts towards restructuring the public sector. The timing of the union cabinet decision to provide substantial freedom to the best run central PSUs was significant considering that on Friday last when it met to formulate the necessary steps in that direction, the Janata Dal was perilously close to breaking up. This suggested that the United Front could if it wanted muster the strength needed to take important policy measures. That it failed to do in respect of the oil pool account is another matter. Yet, the signal has been given that the present government could move firmly regardless of the political problems facing one or more of its constituents.

Maran clearly knows what is necessary to keep alive the process of liberalisation. The nine PSUs with the best track record are to be enabled to reach commanding heights of the economy. This is Maran's game plan. There will be no scope for back seat driving and decisions can be taken by the respective managements without reference to the ministries. The essence of liberalisation lies in the fact that joint ventures can be promoted without 51 per cent control of the equity stake by the PSUs concerned.

Logically, the next step should be exit policy for the poor performers in the Central public sector. Maran, no doubt, recognises this but, obviously, he needs support from his colleagues to take the the nation strongly towards a situation where the public sector will really be a functioning one. The commanding heights that had been loudly proclaimed in the Seventies were largely notional and Maran has sought to give these a true meaning through his action in respect of navratnas. But the exercise he has initiated will not be complete without a serious effort to deal with units that don't perform. This battle he cannot fight alone, and the steering committee of the UF must realise this. The sooner it does the better it would be for the quality of the nation's reform process. A restructuring of the PSUs in different states is very important and Maran would do well to initiate consultations with his counterparts in state governments preparatory to a special meeting of either the National Development Council or the Inter State Council for formulating a strategy for state level PSUs.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.