A Perpetual Scam ?

Sure ! Except that it is known as “ Public Sector Units – PSUs “.

Here is why [ as reported in DNA / Sept 06,2011 ] :

Ø  About a third of India’s 249 state–owned firms are losing money ; $ 3.4 billion ( Rs. 15,300 Cr ) in the most recent financial year

Ø  There is nothing the Govt can do because of the current labor laws

Ø  Govt labor department has granted permission to 21 PSUs to close factories – but none has been closed !

Ø  PSUs have assets worth $ 199 billion ( Rs. 8,95,500 Cr ), which, last year gave an average return on capital of about 4.3 % !

Ø  Govt missed the goal of raising $ 8.7 billion ( Rs.39,150 Cr ), this year thru sale of stakes in PSUs

What were once the “ Commanding Heights “ , have now become the “ Demanding Absurdities “ of Indian economy ! Any wonder petrol prices in India are more than double those in neighboring countries ?

With regards

Hemen  Parekh