This refers to Debashis Basu's column "Gyan Sangam's PSU 'reform'" (Irrational Choice, January 12). Privatisation is definitely needed but is very difficult to implement. It would leave a big dent on the exchequer. Political parties under the earlier regimes created a situation where public sector undertaking (PSU) reforms would come at a very heavy cost and with serious consequences.
The second phase of the Jan Dhan Yojana, as propagated by Prime Minister Narendra Modi at the Gyan Sangam, would also not usher in the needed PSU reform. Either conservative bankers resort to "lazy banking" (a euphemism for investment in government securities) or aggressive bankers promote "irresponsible banking" and pile up bad assets. Unfortunately, the top bankers who have resorted to the middle path in increasing the size of the balance sheet with the accompanying robust income statement, are missing among the PSUs. All that came up for deliberations during the Gyan Sangam was about the future. What about the current situation? It has become difficult to address the existing stressed and non-performing assets, which together make up a big bill.
Finally, even if we assume that policy-makers intend to take a serious call on PSU reforms, who will suggest privatisation? No banker worth his salt has the guts to pronounce the word "privatisation".
K V Rao Bengaluru
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