Privatisation alone cant improve PSUs efficiencies: Manmohan

Prime Minister Manmohan Singh today said that privatization is not the only solution to overcome efficiency problems of the Public Sector Undertakings (PSU) of the country.

New Delhi, July 18 : Prime Minister Manmohan Singh today said that privatization is not the only solution to overcome efficiency problems of the Public Sector Undertakings (PSU) of the country.

"While privatization is sometimes driven by fiscal compulsions and also by efficiency considerations, it is also seen by some as a way of relieving PSUs (Public Sector Units) of the burden of "boundary management"," Singh said while releasing a book titled "The Indian CEO- A Portrait of Excellence".

Privatization need not be the only solution to inefficiency of public enterprises. Relieving them of the problem of boundary management burdens can also help improve the efficiency, he added.

Commenting on the regulatory process of the country, Singh said: "Opacity and unpredictability of the regulatory process in India are major barriers to entry and a hurdle for growth of our enterprises."

He further said that rather than interfere and control, the Government should be a stakeholder in the functioning of a public enterprise.

The secret of success of any modern enterprise in a highly competitive world is to learn to work together, Singh said.

ANI