One of the signal failures of the UPA government is its inability to deal with the public sector; it simply has no idea whether it should sell PSUs in bits and pieces or allow them to grow unfettered. One would have expected a government headed by an economist of Manmohan Singh’s reputation to have a strategy on PSUs, but it appears that the government has put the problem on the back burner. It does not even allow our biggest PSUs to operate with any degree of autonomy.
A typical case is Bharat Sanchar Nigam Ltd (BSNL), which has a turnover of Rs 36,000 crore. According to the report “19 in contest for BSNL chief” (June 30), the current CMD retires in July and yet no effort has been made to find a replacement for him. Typically, the government has postponed interviews to select a new boss for the company several times, allowing lobbying for the post to become a political issue. This is happening at a time when private sector rivals are growing exponentially, thanks to top-quality managements that are driving their strategies.
British Prime Minister David Cameron is showing better understanding of the problem of PSUs and how to deal with it. In a letter to workers in the public sector last week, Cameron and his deputy Nick Clegg wrote: “People who work in the public sector don’t get enough credit for what they do, so thank you. As well as our thanks, we want to give you more trust and more responsibility. For years you’ve been undermined by targets and rules set from on high. Bit by bit we’re going to end that culture.
We’ll set you free to use your professionalism, commitment and good ideas to make life better for everyone.” In order to cope with a tight financial situation, the two leaders also urged the public sector to “be innovative, be radical, challenge the way things are done. Every serious idea will be considered: by government departments, by the Treasury, by our teams in Number 10 and the Cabinet Office”. Will India learn from its erstwhile rulers?
Anitha Bhandarker, Hyderabad
