Question

Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?

Answer 1

To improve efficiency, infuse professionalism and enable PSUs to compete effectively in the market, the government awarded the status of ‘navaratnas’ to the following nine PSUs:

1. Indian Oil Corporation Limited (IOCL)
2. Bharat Petroleum Corporation Limited (BPCL)
3. Hindustan Petroleum Corporation Limited (HPCL)
4. Oil and Natural Gas Corporation Limited (ONGC)
5. Steel Authority of India Limited (SAIL)
6. Indian Petrochemicals Corporation Limited (IPCL) 
7. Bharat Heavy Electricals Limited (BHEL)
8. National Thermal Power Corporation Limited (NTPC)
9. Videsh Sanchar Nigam Limited (VSNL)

These corporations were granted a greater degree of financial, managerial and operational autonomy. This boosted their efficiency and effectiveness. They also became highly competitive and some of them are becoming the giant global players. Consequent to their better performance, the government retained them under the public sector and enabled them to grow themselves not only in the domestic market but also in the international market. These corporations are self-reliant and financially self-sufficient.

Thus, the Navaratna policy has certainly improved the performance of these PSUs.