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Fortune India

Fortune India

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Do we need PSU at all?

THE NIRAV MODI scandal at Punjab National Bank has brought the state of affairs at public sector banks into sharp focus. Questions are being asked about the manner in which such banks function and the quality of their management. But broaden the canvas, and many of the problems can be found to be endemic not just in banks but across the public sector as a whole. There are several public sector undertakings (PSUs) owned by the central and state governments which have been running up losses for years as the government dishes out money to keep them going. Consider some figures. The losses racked up by 150-plus PSUs in India over the last two fiscals add up to a staggering Rs 102,354 crore, with very few solutions in sight. Hence, in our cover story, we ask, do we need PSUs at all? Barring a few strategically important sectors, there seems to be very little logic for the government to be involved in running disparate businesses. But, as Ashish Gupta and Debabrata Das write, it’s not easy for governments to kill off PSUs. Neeraj Gupta, secretary of the government’s department of investment and public asset management, admits that it hardly makes sense for the government to keep selling land in a bid to keep the dead assets alive. The challenge for the government, then, is huge.But it’s not all bad news. On the flip side, lists editor Rajiv Bhuva has a few figures which should provide some relief to the government. The 2018 Fortune India list of India’s Most Profitable PSUs—the listing of the 50 top government-owned entities—has thrown up an aggregate gross profit figure of Rs 262,354 crore. But, slice and dice the list a little, and there are some interesting takeaways

Fortune is one of the most respected business magazines in the world. It is known for its unrivaled access to world’s most influential leaders and decision-makers. In a world of business long on information and short on time, Fortune stands out with trusted insight, deep reporting and provocative story telling. Few publications cover the world of business with as much depth, breadth, wisdom, and panache. That’s why Fortune is recognized as ‘the best magazine in the world that just happens to be about business’. Fortune 500 is perhaps the best-known brand in business journalism and the ultimate hallmark of corporate success. Launched in India in October 2010 in a licensed partnership between ABP Group of Publications & Time Inc., Fortune India retains the spirit of the global brand with respect to thought leadership and practice from across the world every month while adding an Indian dimension. It is the only truly global business magazine dedicated to the global success of Indian business leaders, offering actionable insights to propel their businesses.

Fortune Indai is published every month. Fortune India publishes 18 issues in a year- Monthly, Quarterly and Bi-annual. Single Issue Digital price for monthly is 150 INR and 200 INR for special issues (Quarterly and Bi-annual)