India’s Public Sector Steel Industry “Our steel industry is gigantic, but still not large enough for our needs. Steel plays a very vital and little understood role in our lives and in our economy. What is steel? How is steel made? Where is it made? Is one steel plant exactly like another? Is the technology…
Inscrutable are the ways of public-sector trade unions. The Federation of the State Trading Corporation Employees’ Unions (FSTCEU) lived up to this image when it resorted to an eight-day strike last fortnight over a peculiarly non-economic issue: the shifting of the corporation’s Delhi branch office from its location on the arterial Janpath to Malcha Marg…
Governments cynically scoop out value from their own companies. Privatisation will work only when the government sells more than 50 per cent of a state-owned company’s capital to the public and relinquishes management control. This has not happened. Successive governments have mostly destroyed value by divesting only thin slivers of public sector undertakings (PSUs) and…
The government must take courage and embrace privatisation Two numbers speak eloquently about our schizophrenia over privatisation: the Rs 2.11 trillion ($32.5 billion) package announced on October 24 to recapitalise public-sector banks (PSBs); and Rs 2.67 trillion ($41 billion), the total earned by the government in 26 years from the divestment of its stakes, in…