Indian PSEs on a fast track despite global slow down

Despite the global economic slowdown the Indian Public Sector Enterprises are not slowing down and many are making large investments. This was the clear message that emerged from a Panel Discussion on “The Emerging Role of the Public Sector in a Post Crisis Economy” at the National Conference and Annual Session 2009 of Confederation of Indian Industry (CII) held here today. ”The PSE Boards are taking decisions not to slowdown despite the global slowdown”, said Mr. R.S.Sharma, Chairman and Managing Director, Oil & Natural Gas Commission, while speaking at the discussion.  

First priority for any organization has to be good ethics, good governance and absolute transparency, said Mr. Sharma. The one major factor behind the global meltdown was the way big profits were made in a shortest time frame with lack of transparency, he added.

ONGC was currently investing funds in excess of Rs.60,000 crores on various projects and had the highest profit amongst both the Public and Private sector companies in India said Mr. Sharma.

“We are not slowing down and have decided to go ahead with all our investments”, said Mr. S.K.Roongta, Chairman, Steel Authority of India Ltd. “Four major steel producers from India find a place amongst the twenty best in the world. The Indian steel industry has learnt to be competitive in the face of global competition”, he added. Steel Authority of India Ltd. (SAIL), that reported the third highest profits in the country, is investing over Rs.10,000 crores in one of its many projects, added Mr. Roongta.

When asked to outline the strengths of the Indian PSEs, Mr. Roongta attributed it to the huge infrastructure developed at low costs and the large reservoir of talented, hardworking engineers that made the Indian PSEs what they are today.

Mr. P.S.Bhattacharya, Chairman, Coal India Ltd brought forth the fact that the PSE’s while turning profit making organizations, continue to have the nation’s interest at their core. “We have foreseen the possible coal crisis that the nation might face 30 years from now and have started reverting to the underground mining practices,” said Mr. Bhattacharya. 

Mr. Mukesh Rohatagi, Chairman and Managing Director, Engineers India Ltd, highlighted the PSU’s people focus. While discussing the role that EIL plays, Mr. Rohatagi said “We are focused on satisfying the creative urge of our engineers by encouraging them to work on solar and nuclear projects; pipelines that carry crude, gas, petro chemicals, gas gathering, LNG etc.”.

Mr. Tarun Das, Chief Mentor, CII, while moderating the discussion while applauded the role of the Indian PSE’s said “The PSUs are subject to volatility, government intervention and controls and yet they perform both in India and internationally”. They are in strategic industries requiring heavy and long term investments, areas of national and economic security. Person to person, in comparison with the private sector, the PSU employees are truly outstanding, added Mr. Das.