Privatisation not the only solution to PSEs: PM

New Delhi, July 18 (UNI) Prime Minister Manmohan Singh today said privatisation was not the only solution to inefficiency of public enterprises as removing the political and bureaucratic hurdles alone would go a long way in their successful functioning.

Observing that ''far greater attention'' had been paid in the past few years to the question of privatisation of public enterprises rather than to their reform, Dr Singh said privatisation was sometimes driven by fiscal compulsions and also by efficiency considerations.

Privatisation was also seen by some as a way of relieving Public Sector Units of the burden of 'boundary management.' ''Therefore, privatisation need not be the only solution to inefficiency of public enterprises. Relieving them of problems of boundary management and the burdens associated with them can also help improve their efficiency,'' Dr Singh said while releasing the book, ''The Indian CEO - A Portrit of Excellence.'' The political environment and the overhang of excessive bureaucratisation were also not very conducive to creating the appropriate boundary conditions, he said.

It should be the endeavor to empower public enterprises by easing the bureaucratic and political hold of Government over them. This required reform of Government and the procedures followed to ensure Parliamentary accountability.

''Parliamentary accountability should not degenerate into either ministerial or political interference in day-to-day management of enterprises, or bureaucratic stranglehold on managerial decision-making.

''I would like to see Public Sector Units functioning in a more liberal environment. I would like their boards and top management to be adequately empowered so that they can take decisions mindful of the environment in which they are functioning,'' Dr Singh said.

He said the public sector had some very talented and dedicated CEOs but ''we cannot rest content with a few success stories. We need an army of world class managers who can turn our companies around and keep Indian enterprises on the road to high growth.'' Petroleum Minister Murli Deora, PM's Principal Secretary T K A Nair and the CEOs of the companies were also present on the occasion.

The Prime Minister said he shared the CEOs' view that rather than interfering and controlling, Government should be a stakeholder in the functioning of a public enterprise.

UNI