Opinion - Letters to the Editor   

On PSEs

The article "In defence of public sector enterprises" (June 22) is incisive and delves into what ails PSUs at the highest level. The bureaucracy, which should carry most of the blame, points fingers at trade unions and employees. And the media promptly display this. For instance, the LIC, which settles a huge chunk of its reported claims, never gets even minuscule media space for its world-class achievement. But when pending cases are settled by courts, they are blown out of proportion.

M.S.R.A.Srihari,
Khammam, A.P.

* * *

Private companies hardly have second thoughts on switching investment to sectors that bring more profits, unless the investment cost is too high to undo. We have seen this in the textile industry. I wonder if any private company in India would have ventured to manufacture aircraft like HAL or produce fuel for nuclear reactors, meeting stringent quality requirements. Before banks were nationalised, deposits were not considered safe. The only dealings common men had with banks were petty transactions like borrowing with gold ornaments as security. Nationalisation changed the face of banking. State PSUs such as BEST in Mumbai, TELK in Kerala, and Karnataka Soaps and Oils have also done commendable work.

V.V. Raman,
Hampton, Virginia

* * *

Most PSUs show profits by selling their products to government agencies at high prices. If they are privatised, production will increase, the quality will improve, customer service will be better, prices will be lower and the profit generated will be many times higher. More capital with industrialists will result in more industrial units and jobs. The telephone industry was making huge profits for many decades because the government did not allow private players. After privatisation, we have seen a revolution in the communication field resulting in economic growth at an accelerated pace.

P.S.R. Rao,
Hosur, T.N.

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