We cannot aim at a high (planned) rate of growth if we do no: upgrade the existing infrastructure industries (all of which are in the public sector) and if the same not operate at optimum capacities.

An airport has to have a proper infrastructure, which consists of runaways, taxiways, apron, terminal for arrival and departure of passengers, terminal for freight and ground interchange. The delays create most of the complications. All Rights Reserved. The sick public sector units that cannot be revived or sold may be closed down. • Indian customs-are we in a time warp? For safety and security it has to have an air traffic control to monitor all the incoming and outgoing flights to take off and land, security personnel requires for baggage, economic philosophy of neoliberalism suggests that the American society should be shaped by the free market as it emphasizes individual freedom from government intervention (Harvey, 2005, p. 64). Mrs. Binayak Chhetri Rusal Tuladhar

Second, the loss-making and/or sick units are a real problem. A major problem in the way of efficient operation of the PSU is their inability to take timely decisions, which is due partly to the factors explained above and partly to the decision-making process that has been in operation. It is in this background that the demand for privatization of the PSUs has gained momentum while the basic impetus comes from the world wide move for privatization and dismantling of the centrally planned economies. In the capital market, the inefficient units have no place.

It is true that there are examples of a few good public sector managers, but the government made an inconsequential contribution to it. The loss-making PSUs (in 1988-89, out of 222 Central PSUs, 104 units made a loss of Rs 1,906.51 crores) are now considered a liability in view of the budgetary support required by them.

2.4 Streamlining Businesses to Allow Productive Job Creations 4 In the rural areas only the public sector banks provide the services. But the ability of the public sector to cope with the demands of the economy is being questioned. Without the public sector, we would. First, we are still a developing economy with about 30 per cent (that is, around 250 million) people below the poverty line, who do not have access to necessary shelter, primary health care, safe drinking water and so on. Particular care has to be taken to ensure that the existing profit-making enterprises are provided with necessary environment for further growth.

At the same time, it cannot be said that the idea of privatization, in its strict sense, has been accepted fully. The lack of performance has become even more obvious today when the economy is facing a serious resources crisis and we expect the public sector to generate internal resources for reinvestment purposes. There is yet another serious aspect that relates to the socio-economic obligations imposed on the PSUs. 4. In brief, the public sector has failed to project itself as a shining example of being a guiding force. From the point of view of industrial policy, the Schedule A (industries) is no longer considered sacrosanct and the Government has already permitted private sector participation in areas like power and telecommunications. Over the years, about Rs. Impact of ‘Internet of Things (IoT)’ on our lives, Yes: Public Sector Banks Should Be Privatized-, No: Public Sector Banks Should Not Be Privatized-, Farm Bills 2020 – Pros, Cons & Challenges, National Health ID – Pros, Cons & Challenges, National Recruitment Agency – Pros & Challenges, Impact of COVID-19 (Coronavirus) on the Global economy, Lessons for the world from COVID-19 pandemic. The public sector has also failed to generate resources for development to the extent it was desired. State owned companies (SOE) or enterprises are also referred to as, essay will be to discuss the benefits and drawbacks of Government owned companies becoming Privatized and whether it is desirable for all the inefficient firms to go private linking it with the real world situation of an international firm gone private. For this, they may … The workers have to be provided even food at subsidized rates to keep the wages under control. It may also resolve the problem of resource constraint of the government to a considerable extent.

But there may not be many takers. With these major structural barriers to efficiency, it is not difficult understand low productivity in the public sector. Individual and corporate investors should be lowed to hold shares of the public sector undertakings up to certain limits. The uniqueness of this site is that we keep the articles updated. Pandit Jawaharlal Net had been unrelenting in his support of a socialist economy, which he later modified and called socialistic pattern of society (under pressure from colleagues in the party and the intermediate regime of influential business group). The 2014 PJ Nayak Committee noted that the board of most of the PSBs is compromised and lack the sense of purpose. 3. Should anonymity be allowed on the internet? The issue of privatization of public sector undertakings is now a widely one.