Public Sector Enterprises in India is a comprehensive and authoritative work covering the entire public sector in India, including the financial sector public enterprises such as banks and insurance companies. The book begins with the philosophy behind the public sector and traces its evolution in India and its subsequent privatisation and disinvestment after the economic liberalisation of 1991. Based on the most up-to-date data and the latest developments, it examines the plight and options of a public sector paralysed by excessive government interference and now trapped hopelessly between the State and the market. Drawing widely upon global experiences, the book argues that disinvestment and privatisation need not be the only answer to reform the public sector companies. They can be rejuvenated and transformed into global champions if freed from the stifling controls by an unimaginative government machinery, by depoliticisation and separation of the government’s roles as a majority stakeholder, policy-maker and regulator—and by changing their holding structure.
Chapter 7: Reform and Reform Roadmap of PSEs
The Istituto per la Ricostruzione Industriale (IRI), or Institute for Industrial Reconstruction, was established in Italy in 1933 as a temporary body to tackle the financial crisis that had been building up for quite some time. Italy had emerged from the First World War devastated in every respect. It had spent more on the war than its total expenditure during the previous 50 years and lost about a million of its youth who were either dead or rendered incapacitated through injuries in the war. The war debt and food shortages led to spiralling inflation and threw the economy into a prolonged depression. By 1922, when the fascists under Benito Mussolini had come to ...