Submit List of Ailing PSUs & Their Revival Plans

Recently, government announced that it is going for the revival of the two sick Public Sector Undertakings. This article will analyze the underlying facts about the same.


⇒ Hindustan Machine Tools (HMT)

⇒ Hindustan Cables (HC)

                Their Revival Plans


⇒ By way of Cash

⇒ Remaining, would be in the form of non-monetary consideration such as waiver of loans and interests on thes Ailing PSU’s


⇒ In 1947, we had only five firms in the strategic sector.

⇒ After independence & acceptance of five year plan, around 250 PSU’s emerged known as the “temples” of India (said by Nehru)

⇒ Even State Governments were allowed to set up PSU’s.

⇒ Reason for setting up PSU: i) For rapid industrialization ii) For rapid infrastructure building

⇒ Along the lines of Communist state like Russia (USSR at that time).

⇒ Primary motives behind setting up a PSU now has changed to political consideration.

⇒ Many of the important private industries were nationalized and converted to PSU

⇒ Generation of employment and perceived development of backward regions replaced economic considerations for the establishment and spread of PSUs

⇒ They were a huge success at the start due to no competition, government backing, rigid licensing policy, etc.

⇒ Profession management was soon replaced too bureaucratic management with politicians often taking over as the heads of many of these PSUs.

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