The Government's decision not to privatise certain public sector undertakings and the Finance Minister's observation that the sick PSUs should be closed only indicate the confusion and uncertainty that seem to prevail in the ruling coalition on the economic reforms and industrial policies. Both public and private sector concepts have their merits and defects.

Just like sick PSUs, many private sector units have also become sick. The Left parties certainly have a valid point when they assert that the public sector should not be privatised for the sake of privatisation.

At the same time, the Finance Minister is unconvincing when he states that sick public sector units should be closed down. Why not the government try to privatise the sick public sector units? Certainly, several units can be revived if there is a change of management and strategy. The government can attract entrepreneurs to take over such sick public sector units by providing suitable incentives and concessions. What is required is a dynamic approach and bold initiatives. Selling efficient public sector units such as Hindustan Zinc and Bharat Aluminium requires no particular skill. After privatisation of such units, no great progress seems to have been achieved.

The view of Rajaji, the far-sighted champion of privatisation, was that the government should govern and should not do business. What Rajaji perhaps meant was that taking up such business-oriented functions would distract the government from its legitimate duty of governing the state well. Dr Manmohan Singh's government should meet the arguments of the Left parties instead of buckling under pressure and shying away from the issues.

N. S. Venkataraman

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