SCOPE pitches for greater financial, operational autonomy of PSEs

SCOPE, an umbrella organisation of the Central Public Sector Enterprises (PSEs), today pitched for changes in government policies to empower such firms with more operational and financial autonomy.

"...Another round of policy initiatives is required for grant of further operational and financial autonomy and empowerment to help the PSEs to face the challenges in this era of globalisation...," SCOPE Chairman C S Verma said in a function to mark the Public Sector Day here.

Verma, who is also heading state-run firms - SAIL and NMDC, however, did not spell out what better financial and operational autonomy that PSUs were required.

India has around 260 CPSEs, including 66 sick units that are causing losses to the Exchequer.

"We also need to extend the right enablers for those PSEs which require to be turned around into profitable commercial enterprises," Verma said.

The government had initiated the concept of autonomy for the PSEs with the introduction of the New Economic Policy of 1991. It gradually accorded varied degrees of autonomy to the firms according to their strengths.

Championing the cause of PSEs, he said these are slated to  play a major role for achieving the objective of National Manufacturing Policy in enhancing the share of manufacturing from the current level of 16 per cent to 25 per cent of GDP within a decade and creating 100 million jobs.

"The PSEs stand proud of their achievements since inception and particularly the resilience that they have shown during the challenging times of global slowdown and the recessionary conditions experienced in the West," he said.