Question

Navratna policy has facilitated the maintenance, promotion, and disinvestment of Public Sector Undertakings (PSUs). Justify the given statement with a valid explanation.

Answer 1

The Navratna Policy was introduced by the Government of India to provide greater financial and operational autonomy to leading PSUs.

Justifications:
1. Increased Operational Freedom: 
 - The Navratna status allows PSUs greater decision-making power, helping them compete with private enterprises both domestically and globally. 

2. Facilitating Disinvestment and Efficiency:
- The policy has encouraged disinvestment, allowing partial privatization, thereby reducing the financial burden on the government.
- It has helped PSUs become self-reliant and more competitive in the global market. 

Conclusion: The Navratna policy has played a crucial role in strengthening India’s public sector enterprises, allowing them greater autonomy while encouraging efficiency and privatization.