The public sector is at the cross roads ever since the launch of economic reforms programme in India. The pendulum has been swinging between survival and surrender. It is the result of a confluence of several factors: a shift in global economic environment, the emergence of the market economy and myths surrounding the performance of the public sector. So virulent has been the onslaught that it is becoming axiomatic that by the very concept, the public sector is inefficient and resource waster whereas private enterprise is resource efficient.
The reform programme in India commenced with the policy of restricting of the public sector supported by greater public participation. With the passage of time, the process of liberalisation has shifted to privatisation in a disguised form couched as strategic role, in the wake of the recent hot pursuit of the wholesale privatisation programme a lively ana poignant debate has emerged. It provides a golden opportunity to introspect and revisit the issue.
At the very outset, it must be made clear that in the worldwide liberalised economic environment and very high stake of the state in most public sector undertakings disinvestment policy seeks to differentiate closed or bankrupt enterprise from the private sector a fact deliberately overlooked by the champions of privatisation. These undertakings need immediate attention. They are an unnecessary drain on the public exchequer. A high priority area for the disinvestment programme ought to be these enterprises but under one or the other argument these remain unattended, maybe it involves a tough task... If these cannot be sold lock, stock and barrel asset stripping is the only option. Obviously, the government cannot realise good price from these assets but their disposal will help stop the drain. If the assets are depreciated or became obsolete, then there is no point in holding on to them indefinhely and take to softer option of selling the vibrant and highly profit-making organisations to reduce the budgetary deficit. Non performers exist both in public and private sectors. Why condemn the public sector as a whole? Better option will be closure or privatisation of loss-making and non-viable units supporting PSU's which could be turned around and become healthy and viable and providing autonomy to the boards of PSU's which are performing well and have potential to be globally competitive be welcome. With public participation in the PSU's there will be a good dose of accountability in the system. What needs to be reviewed are some basic issues the priorities allocated to the enterprises selected for disinvestment, a comprehensive road map delineating the route, the modes and modalities timing and its consequences. These basic issues require greater discussion and participative decision- making. In any event, the disinvestment programme in respect of the closed and non- revivable units is a must if the drain of further resources is to be prevented.
Let it be understood that PSU's are a big repository of value and it will take quite some time for privatisation programme to materialise despite the desire to expedite the process.Until then if a vacuum emerges attended by uncertainty it will do a great harm to the investments which were made with such great dedication although desired now. The government has withdrawn a budgetary support over the last decade. If some support is extended it is largely directed to closed or losing enterprise which have no fortune.
The basic issue(s) requiring greater discussion and participative decision making regarding the disinvestment programme is/are
- The priorities allocated to the enterprises selected for disinvestment
- A comprehensive road-map delineating the route
- The modes and modalities, timings and its consequence
- All of these
The Correct Option is D
Solution and Explanation
The correct option is (D):All of these
The passage states that the basic issues requiring greater discussion and participative decision-making regarding the disinvestment program include:
- The priorities allocated to the enterprises selected for disinvestment
- A comprehensive road-map delineating the route
- The modes and modalities, timings, and its consequences
Thus, all the mentioned options are relevant to the discussion of the disinvestment program.
"The public sector is inefficient and resources waster whereas private enterprise is resource-efficient". This opinion is due to
- A shift in global economic environment
- The emergence of market economy
- The myths surrounding the performance of the public sector
- All of these
The Correct Option is D
Solution and Explanation
The correct option is (D):All of these
The passage indicates that the opinion about the public sector being inefficient and a resource waster, while private enterprise is seen as resource-efficient, is a result of:
- A shift in the global economic environment
- The emergence of the market economy
- The myths surrounding the performance of the public sector
Thus, all these factors contribute to that opinion.
The reform programme in India, started with the policy of restructuring of PSUs, has got shifted to
- Liberalisation
- Privatisation
- Globalisation
- None of these
The Correct Option is B
Solution and Explanation
The correct option is (B):Privatisation
The passage states that the reform program in India, which began with the restructuring of public sector undertakings (PSUs), has shifted towards privatization, particularly in the context of economic reforms and market economy emergence.
What were made with great dedication earlier, but now derided?
- Disinvestment
- Investments in PSUs
- Wholesale privatisation programme
- Strategic plans
The Correct Option is B
Solution and Explanation
The correct option is (B):Investments in PSUs
The passage indicates that the investments made in public sector undertakings (PSUs) with great dedication are now facing criticism and are being derided, especially in the context of the ongoing disinvestment and privatization discussions.
According to the author, non-performers exist in.
- Goverment
- Public Sector
- Private Sector
- Public and private sectors
The Correct Option is D
Solution and Explanation
The correct option is (D):Public and private sectors
The passage mentions that "non performers exist both in public and private sectors," indicating that inefficiency and non-performance are not exclusive to either sector.
An appropriate title to the passage will be
- "Disinvestment of PSUs"
- "Economic Reforms Programmes in India"
- "liberalised Economic Environment"
- "Non-performing Assets"
The Correct Option is A
Solution and Explanation
Thecorrect option is (A):"Disinvestment of PSUs"
This title directly reflects the central theme of the passage, which discusses the issues surrounding public sector undertakings (PSUs), the need for disinvestment, and the implications of privatization in the context of economic reforms in India.
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