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SCOPE's initiative
The Standing Conference of Public Enterprises (SCOPE) is on the right track in trying to rope in state PSUs in its efforts to set right the nation's public sector. Its secretary general, MA Hakeem, recently unfolded the agenda for preparing state level units for the competitive environment under reform. Unfortunately, more than six years after the start of liberalisation there is still no meaningful plan of action for the restructuring of public sector undertakings generally. No doubt, the centre has classified the better performers as navratnas and some others as mini ratnas. But, that is about all and at the state level, the less said the better. If there is still some awareness about the needs of PSUs, this is largely due to the Disinvestment Commission, which has, since its inception, responded warmly to the imperative of giving public sector a new character and its reports on disinvestment have sought to provide a dynamic programme that should, in all fairness, have come from the government itself. The
commission has expressed itself consistently in support of a policy that would let the realisation from the sale of government stake go to help the undertakings modernise themselves. Quite as important, the PSUs have to acquire a corporate culture and their managements must begin to enjoy true autonomy, which unfortunately the administrative ministries are not prepared to allow. The time has come for different public sector undertakings to choose their own directors and it has become necessary to bring down the government equity to below 50 per cent in order to facilitate such freedom. Alternatively, the government can keep the equity at a higher level but must undertake not to force on the managements directors who would perpetually take decisions for them.Ideally, the public sector should stop being the government sector and must rather justify its description and the administrative ministries should make this possible. The disinvestment process must become an instrument of creating and fostering public
involvement and participation in the management. It is high time for recognition that government interest is not necessarily public interest and government does not mean public. The two are two different things. In this context, SCOPE's proposals may not be received well by the state political leadership, but, obviously, pleasing the politicians is not the business of a body fighting to keep the public sector alive and kicking in a difficult, even daunting, environment.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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