Despite more than two decades of economic liberalisation in the country, the public sector still remains the backbone of the Indian economy. The government has delegated functional autonomy to help CPSEs perform better not only domestically but also internationally. To this end, Maharatna status has been conferred on select companies. Meanwhile, more reforms are on the cards to streamline decision-making in PSUs. These issues were discussed at length in the global PSE summit held by the Confederation of Indian Industry (CII) recently in Delhi. BP Rao, chairman, CII Council on PSEs and Bhel CMD, shares his insights with Fe?s Noor Mohammad. Excerpts:
What was the agenda for the global PSE summit? How many countries participated in the conference ?
The CII Global PSE Summit was intended to provide an interactive platform for Indian and foreign state-owned enterprises (SOEs) on issues relating to their role in national and global economies, governance and road map for the future.
All major PSEs in the country, China?s CSR Corporation Limited & Bhutan?s Druk Holding and Investments and KPMG, the knowledge partner attended the summit.
We were also expecting participation from Bangladesh, South Africa & France?but due to some unavoidable circumstances, the speakers from these countries could not make it.
What came out of the event? Will similar conferences be organised in other countries as well?
The CII Global PSE Summit provided an opportunity to Indian PSEs to share best practices with their global counterparts. There were very important deliberations on corporate governance issues, the strategic importance of these enterprises in the country?s economy, and global growth prospects. This will in turn help to outline the way forward for the public sector in India.
Next edition of the Summit, we expect to have a much larger participation.
Do you think the summit served as a useful platform for giving new ideas on reforms in the Indian public sector?
This first ever global summit in India served as a useful platform to bring into focus the multiple roles which Indian PSEs are operating under multiple layers of governance and yet delivering consistent high performance. The summit also emphasized on the way forward.
Do you feel Indian CPSEs need more functional autonomy ?
A view was expressed in the summit that separation of ownership from management could be a good option and the same need not be construed as privatisation.
Regarding issues of functional autonomy?the categorisation of PSEs in Maharatna, Navratna, Miniratna categories is an important step towards empowerment.
However, more functional autonomy is intended to be extended by the government for greater empowerment of the PSEs.
Do you think shifting administrative control of PSEs to a holding company from different ministries will help in making PSEs functionally efficient?
Regarding holding companies, it is a model that has worked in some countries. It needs to be examined in detail with respect its applicability and suitability in the Indian context.