Why consolidation of sovereign holding for PSEs makes perfect sense today

With a sovereign holding company structure, popularly known as centralised agency model, the government or the state would be able to ensure non-interference in day-to-day functioning of PSEs

In the past year, the government announced some key decisions of creating consolidated giants in various sectors, to take advantage of economies of scale and greater market penetration, and thereby creating a niche for oneself.
 
The plans for creation of an international oil conglomerate by consolidating existing oil PSEs, the merger of five subsidiaries of SBI within itself along with sporadic reports that the government is considering expanding scope of consolidation of PSEs in various sectors, including defence, construction and consultancy are in coherence with the Organisation for Economic Cooperation and Development (OECD) principle of corporate governance. One of