Call Us: +91-11-23073004, 23073042 | Mail: info@bureaucracytoday.com

Editor speak »

    April 2016

What ails the PSUs in India?

Editor-Post

Public sector undertakings are the nation builders of India. Over the past couple of decades, they have catapulted the country onto the world stage in sectors from energy and finance to agriculture and transportation. However, it seems that all is not well in many PSUs which are considered to be the lifeline of modern India. 
 
In this edition we bring out the inside story of three of the largest PSUs. 
 
Our Cover Story “unearths” a sordid saga of the ONGC, the largest integrated petroleum company in India. Bureaucracy Today has come across sensitive documents which put a question mark on the credibility of a multi-crore contract awarded by the ONGC to an Indian multinational conglomerate, Larsen and Toubro. Our investigation reveals that the L&T bagged a Rs 379-crore nomination contract, the cost of which is allegedly several times higher than the actual amount required to complete the project even after considering the price escalation factor. Also the fact that the L&T had “no proven expertise on record to lay claim for the specialized contract on its merits” is a grim reminder of the fact that how the PSUs have time and again compromised with the laid guidelines to favour private firms. 
 
The incident, as one can easily assume, is just a tip of the iceberg. According to a Transparency International India report, the private sector is hand in glove with public officers and “instrumental” in effecting corruption. The report states that “collusive corruption”, where PSU officials join hands with those of the private sector, is “greatly present in the Indian business environment, particularly in the power, mining and oil sectors”.
 
It was high time the Narendra Modi Government which has taken the cudgels to bring transparency in the functioning of PSUs took cognizance of such incidents. There should be a mechanism in place under which all business deals made between a PSU and a private firm should be scrutinized. This move on the part of the Government will bring the State-run undertakings from the labyrinth of severe compromise of efficiency, neglect and cost overruns. 
 
In this edition, we also unravel the story of how the Government removed Ravindra Kumar Srivastava from the Chairmanship of the Airports Authority of India almost four years before his tenure was to end after he allegedly began “arm-twisting” industrialist Vivek Nair, Chairman of Leela Palaces, Hotels and Resorts, as well as the AAI’s joint venture partners -- GMR and GVK. 
 
Also we have highlighted the issue of the GAIL India postponing for the third time in a row a multi-billion dollar tender for hiring nine ships to transport liquefied natural gas from the US, an action which is seen as an inordinate delay in implementing the Make in India initiative by the State-run gas major.
 
Whatever may be the reason for the dismal state of affairs in the Indian PSUs, ultimately it is the nation which is the loser. The Modi Government has a plethora of challenges ahead and only time can tell whether it would be able to stem the rot plaguing the backbone of the Indian economy.

WRITE A COMMENT

...
Sign in with
Or procced without registration

» Previous Editorials:

March 2017, February 2017, January 2017, January 2017, December 2016, December 2016, November 2016, November 2016, October 2016, October 2016, September 2016, September 2016, August 2016, August 2016, July 2016, July 2016, June 2016, May 2016, May 2016, April 2016, April 2016, April 2016, March 2016, March 2016, February 2016, February 2016, January 2016, January 2016, December 2015, December 2015, November 2015, November 2015, October 2015, October 2015, October 2015, September 2015, September 2015, September 2015, July 2015, July 2015, June 2015, June 2015, May 2015, May 2015, April 2015, April 2015, March 2015, March 2015, February 2015, February 2015, February 2015, January 2015, January 2015, December 2014, December 2014, November 2014, November 2014, October 2014, October 2014, September 2014, September 2014, August 2014, August 2014, July 2014, July 2014, June 2014, June 2014, May 2014, April 2014, March 2014, February 2014, January 2014, December 2013, November 2013, October 2013, October 2013, October 2013, October 2013, September 2013, August 2013, July 2013, June 2013, May 2013, April 2013, March 2013, February 2013, January 2013, December 2012, November 2012, October 2012,