Date:07/07/2008 URL: http://www.thehindubusinessline.com/2008/07/07/stories/2008070751661500.htm

Back Fundamental reorganisation of PSUs needed: Jairam Ramesh

– Nagara Gopal

The Union Minister of State for Commerce and Power, Mr Jairam Ramesh, in Hyderabad.

Our Bureau

Hyderabad, July 6 The Union Minister of State for Commerce and Power, Mr Jairam Ramesh, underlined the need for a fundamental re-organisation of the public sector undertakings to make them competitive in the emerging global scenario.

According to him, the political and bureaucratic environment in the country, irrespective of the Government in power, was not allowing the PSUs to operate in a fully commercial manner.

“Professionalism in these organisations is lost somewhere and their potential is not known to our own people,” Mr Ramesh said.

He was speaking at a meeting here on Saturday after giving away the V Krishnamurthy award for excellence instituted by Centre for Organisation Development to the Chairman and Managing Director of L&T, Mr Anil M. Naik.

Citing the example of L&T where the Government had 31 per cent holding through various financial institutions, he said the Indian multinational could rise to its present level because it was professionally managed.

He added that there was a need to ‘unlock the talent’ in the PSUs like Bharat Heavy Electricals Limited that had cutting edge capabilities by ushering in a professionally managed environment.

In his address, Mr Naik explained the various achievements of the L&T right from its inception 70 years ago to secure a global foot print.

“The future is more challenging. The industry is undergoing changes every two to three years and we are out if we don’t change,” he said.

Mr Naik added that the company was foraying into various fields like ship building by developing a world class shipyard and super critical boiler turbine sector.