The PSUs were created to play a pivotal role as envisaged in the economic model adopted by the country in the post-independence era, inspired essentially by the Soviet socialist model. A large number of PSUs were set up across sectors, which have played a significant role in terms of job creation, social welfare, and overall economic growth of the nation; they rose to occupy commanding heights in the economy. Over the years, however, many of the PSUs have failed to sustain their growth amidst growing liberalization and globalization of the Indian economy. Loss of monopoly and a protectionist regime, and rising competition from private sector competitors have seen many of the government-owned enterprises lose their market share drastically. In many instances, many of the PSUs have found themselves unable to match up to the technological prowess and efficiency of private sector rivals, although many have blamed lack of autonomy and government interventions for their plight. However, the big question is: Is Privatization a cure-for-all ills affecting the PSUs? Perhaps not. It is not as the global experiences like the ones in UK and Brazil suggest. As far as India’s experience is concerned, it would be too early to arrive at a conclusion. Despite the country’s nascent privatization program, experiences related to cases like VSNL and Balco suggest that privatization can yet work. The book attempts to explore privatization, in the context of India and its progress, so far. It also discusses the various lacunae past disinvestment cases suggest and potential models that could help overcome that. The book also contains case studies that provide insights into some of the PSUs that have been successfully privatized.
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