Giving PSUs back to the public

Microview

 Arguments about privatisation tend to get caught up in what is ideal and what is doable.

 Soon after the success of the Maruti IPO, disinvestment minister Arun Shourie was quick to point out the obvious: that where the public is clear about who is in control, it is willing to pay a good price for public sector shares. Therefore, giving private parties strategic control is the way to go.

 Shourie may be right, but he would be making a strategic mistake if he thinks he has an iron-clad argument. In politics, it is not always the right argument that wins, but the right approach. A lot of public education has to precede the stage where rational arguments begin working. The problem with strategic sale is not that it is a bad idea, but it becomes an easy political target.

 Why did Shourie have to compromise on oil refineries? Because many people