Take the plight of IBP, the stand-alone marketing company, with the majority stake with the government. The company is awaiting government's approval to meet its fund requirement for long term commitments for the last two years. The company had sought government permission in 1997 to go in for a public issue which would have raked inclose to Rs 50 crore. Weak market sentiment ensured that this plan was put on the backburner. IBP, subsequently, planned a Rs 382-crore rights issue which would have offered the government an exit option from the firm, but this too has not yet been cleared. The company found its hands tied while the Nitish Sengupta committee report was being prepared. There was some hope when the ministry suggested that BPCL buy out the Centre's stake in the PSU but even this has now been shelved.

Bureaucracy has resulted in IBP recording a mediocre performance. Of what benefit has been the government's majority stake for the company, or for the government? The need of the hour is to give full autonomy to the management.