A K Bhattacharya's column "Double trouble for PSUs" (Raisina Hill, August 25) touches on the privatisation of public sector undertakings (PSUs). The moot point is should privatisation be taken up in all sectors across all businesses? Is that an answer to our problems?
The bitter fact is that the economic reforms of the early nineties bypassed PSU reforms, their functioning in particular. This does not mean that the private sector can take the PSU space effectively and decisively. The taking over of yesteryear's PSU jewel, Indian Petrochemicals Corporation Ltd (IPCL) by Reliance Industries is a case in point. Reliance has emerged as the biggest petrochemical player in India. As someone who worked with IPCL for nearly 10 years as a corporate communications professional, I believe its ultimate privatisation in 2002 has made people wonder whether creating a monopoly in any business segment is worth it from customers' point of view. It is not about one group, it's about having the right policy framework that works better for the country.
I always thought IPCL would not be a bed of roses for Reliance. The PSU giant, no doubt, had talented people but it also had a large section of employees accustomed to obsolete technology and "PSU-babu work culture". It must have been a big challenge for Reliance to manage, but they seem to have done well.
Does this mean privatisation will work in every case? IPCL was lucky that its close competitor and wrecker-in-chief embraced it. A decade has passed since and there is fear that the arrogance of yesteryear is slowly coming back as yet another era of monopoly in petrochemicals has settled in India, albeit with a different name.
It appears that the Indian private sector remains satisfied by its success in India. For example, Reliance, despite being powerful at home - thanks to its acquisition of IPCL - is yet to make its presence felt in the global petrochemical market, largely dominated by companies such as Saudi-based SABIC with whom I worked for seven years. The overseas giants leverage their advantages pretty well. Will the private sector look beyond PSU acquisition?
Gopal Sutar Bangalore
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