Question

Suggest the remedies to overcome problems faced by public sector enterprises. 

Answer 1

Some of the suggestions are as follows:

1. Reforms in the Board of Directors: Because of indifferent attitudes, the directors do not take active interest in the working of the PSU. Hence, it is advised that the Board of Management be suitably reformed by giving appropriate representation of workers and financial directors. 
2. Price Policy: Price policy should be based on existing price structure and market responses.
3. Commercial Outlook: It is necessary that PSUs must generate a surplus to make them self-supporting.
4. Check on Extravagance: The wasteful expenditures like that on foreign trip, entertainment, meetings, and symposiums need to be curtailed.
5. Autonomy: The PSUs should be given full autonomy in their day-to-day working. The political interference need to be stopped.
6. Capacity Utilisation: All should make a full utilisation of installed capacity.