Indian PSUs should aspire to become as large and efficient as the Chinese PSUs - says Varun Gandhi, BJP MP.

…….. In China, for the past few decades, growth has been led by corporatised PSUs, all of them held under a hold­ing company (SASAC), which pro­motes better governance, appoints leadership and executes mergers and acquisitions. Such PSUs that have scaled up are market leaders. In Sin­gapore, the Ministry of Finance fo­cuses on policymaking, while Tema­sek (the holding firm) is focused on corporatising and expanding its PSUs (for example, Singtel, PSA, Singa­pore Power, Singapore Airlines) to­wards a global scale. A PSU with greater autonomy, with the govern­ment retaining control via a holding firm, can also be subject to the right incentives (T.T. Ram Mohan, February 2021). Surely, Indian PSUs could aspire to be as large and efficient as the Chinese ones.

[From the article titled “It’s time to take a relook at privatisation”, by Varun Gandhi, in Hindu dated 10th February, 2022]