 Public Sector Undertakings: Bharat’s other RatnasAjay Chhibber and
Swati Gupta
Working Papers from The George Washington University, Institute for International Economic Policy Abstract: This paper analyzes the performance of India’s 235 public sector undertakings (PSUs) – India’s socialistic legacy from the Nehru-Gandhi days. Of these 7 largest PSUs are called Maha Ratnas, 17 are called Nav Ratnas and some 73 are given the title of Mini Ratnas. e economic reforms of 1991 disman- tled the “license-raj†but le the PSUs intact. Attempts were made to improve their performance through performance contracts called Memorandum of Understandings (MoUs) with some success but with still a large number of loss makers. A brief attempt was made under the NDA-1 government from 1999-2004 to begin dismantling this legacy with strategic disinvestment (privatization) but met with considerable opposition from vested interests and labour unions. Subsequent UPA governments tried to further im- prove the performance of these companies through better performance contracts and bringing more PSUs into the Ratna classi cation. Under UPA-2 more aggressive disinvestment (partial privatization) was also pursued to raise more revenue and hopefully improve rm performance. Keywords: Public Sector Undertakings; State-Owned Enterprises; MoUs; disinvestment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2017-6 Access Statistics for this paper More papers in Working Papers from The George Washington University, Institute for International Economic Policy Contact information at EDIRC. |
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