India can’t make up its mind on PSUs, 30 years after liberalisation
- 30 years after liberalization, India’s muddled thinking on PSUs continues. This year, things may only get worse.
- The tension is only likely to increase further in 2020-21 because of the pandemic. PSUs have already contributed over ₹2,000 crore to the newly launched PM CARES Fund
NEW DELHI : Early last month, a directive went out from the central government to the public sector undertakings (PSUs) owned by it to pay higher dividends and not wait for the end of the financial year to do so. The Centre, as the majority shareholder of these PSUs, would be the biggest benefactor of a higher payout. Further, it asked them to consider not just current year profitability, but also dip into their financial reserves for these dividends.