Letter to the editor: Revive sick PSUs

Written by The Financial Express | Updated: Oct 25 2014, 08:00am hrs
Revive sick PSUs

This refers to the report Cash rich PSUs loath to help sick brethren (October 24). If the idea of better-performing PSUs helping revive sick ones is taken to its logical conclusion, it will give a big boost to Make in India campaign. Many sick PSUs can be easily revived. The first to be revived should be the Indian Telephone Industries (ITI) which can be resuscitated to manufacture desi mobile phones, as there is a huge market for mobile phones, and only Japanese, South Korean, and Chinese mobile phones are used at present. Why the cash-rich Videsh Sanchar Nigam Ltd(VSNL) was privatised when it had a monopoly on providing telecom services in the global market Was this not ironical Autonomy should be given to the PSUs for running such enterprises and labour laws should be made flexible. Unnecessary expenditure should be curbedfor example, free tickets to VIPs in the case of Air India. The PSUs have plenty of real estate and this is a cash cow for reviving the sick ones, but the land should be redeveloped by the PSUs themselves, instead of private players. The National Building Construction Company (NBCC), a PSU, should be roped in to develop the land and build complexes. The sick PSUs can also be made a subsidiary of the rich PSUs where the line of activity has some relationship or even if it is different. The PSUs should not be put on the chopping block as they are the temples of modern India, as the Jawaharlal Nehru had once termed them. These temples need to be renovated and what better way to do this than cash-rich PSUs helping out their sick brethren.

Deendayal M Lulla, Mumbai

Learn from Indigos efficiency

There is little doubt that the success of Indigo Airlines has to do with its "off-ground" policy. The airline is known for its efficient management and excellent customer service, making it the a redoubtable competitor private and public carriers alike. The lessons from Indigo should help Air India and the others to outline an efficiency plan. If all airline were to be as efficient as Indigo, there would be perfect competition. There would be no need for bailouts, for loans turning NPAs, etc. The very corporate world that harps on efficiency and merit should learn a thing or two from the Indigo story and stop crying about ATFs and taxesafter all, Indigo is flying high with the same constraints, just because of its efficiency. Are the private carriers listening

Sumona Pal