Hitherto the main objective of our PSUs is to provide employment to the masses and little attention was paid to run them profitably. Will partial privatization resulting due to PSU share offering to the public will bring in more professionalism into our PSUs and make them profitable in future? Your views?
When the PSUs were set up, the prime objective was to offer employmwent opportunities and though commercial viability of the PSUs was also in the project report, the profit motive took a back seat and the management of the PSUs were alos not bothered as they were given 100% budgetary support by the Govt. This resulted in many PSUs eating into the Capital of the Companies. But with economic liberalisation and also based on the strict instructions of the IMF and World Bank, whereto India look forward for the billions necessary for the ambitious modernisation plans, the shares in PSUs are being partially offloaded by the Govt.. This will surely bring in more professionalism as a usher in the necessity of becoming commercially viable, as no more budgetary support by the Govts will be available to manage the affairs of the matter of the PSUs. The PSUs will have to ind their own resources for their financial commitments, and this demands for a profitable running of the companies.