If India is growing at such a fabulous pace then lot of credit of this goes to Indian corporate, which is putting untiring effort during last 7 decades and kept on India’s Growth engine galloping at astounding pace, especially in manufacturing sector. Interestingly, if we look at the performance of Indian corporates in the manufacturing, then a lot of credit goes to the companies which have often been shunned by their private counterparts as “inefficient, slow and complacent” organizations working in monopolistic environment and are in complete control of Government i.e. Central Public Sector Enterprises (CPSEs). Despite being categorized as “inefficient” for almost last 7 decades and working under so many controls and regulations, there are numerous examples among these CPSEs, which have graduated into global corporations and today are the biggest flag bearers of “Make In India” campaign.
Undoubtedly the PSUs have contributed significantly in the infrastructure development of the country as they have entered in all those sectors where no other corporate would dare to enter like roads, highways, railways, airport, power plants, steel, shipping, etc. In fact the difference between the sheer thought process with which PSUs were conceived differentiates these organizations from the private players and due to this they have been blamed as “inefficient.” Quite clearly they may be “inefficient” in putting profit motive before nation building but many companies like ONGC, IOC, NTPC, Coal India, GAIL, SAIL, BHEL, Oil India, PFC have successfully challenged the profitability and income credentials of private companies and have even become the industry benchmark for the private players. Despite this, their ideology stays within holistic social development and the kind of infrastructure development that these corporate juggernauts have done in rural areas in last seven decades should be appreciated & applauded.
Even after liberalization CPSEs have promoted capital investment in those areas of national importance and infrastructure, where private sector was reluctant to invest due to long gestation period and lower or nil profitability, like Upstream Exploration, Capital Goods Manufacturing, Power Generation etc.
This article is part of GDP Magazine’s 3rd Annual PSU Handbook 2018
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