This refers to "PSU index may slip into red first time in 19 years" (November 21). After liberalisation in 1991, public sector undertakings (PSUs) no longer enjoy the government cushion and protection for continued functioning. A competitive post-liberalisation period has marked the advent of many private players competing in the market on even terms. They are losing out to private players amidst stiff market competition as has been reflected in the post-1999 index of their performance. The failure to swiftly adapt to continuous changes in technology, to keep pace with changing consumer demands, have been a challenge for the public sector. The PSU index portrays this although undertakings that face less market pressures such as the State Bank of India, Bharat Electronics and Power Grid Corporation continue to defy the odds. The inability of PSUs to keep pace with intensive competition has rendered large public sector entities either redundant or has paved way for their acquisition by private players.
C Gopinath Nair, Kochi
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