Financial return cannot be the sole reason for investing in PSUs. They have to serve social/strategic purposes
NITI Aayog, the official think tank, was supposed to place its recommendations on divesting the government’s stake in public sector units (PSU), and strategic sale of sick units by April-end. The document, though yet to be released, will be an important one as it will play an integral role in changing the Union government’s perspective towards PSUs. The state of our PSUs is vital if we want schemes such as Make in India to succeed. Besides, this will hopefully clarify the role of the government versus market on the one hand and government ownership versus regulation on the other.