The backbone of India’s economy in last six decades since independence, the public sector enterprises (PSEs, or PSUs) were the shining stars on Wednesday.

The venue was the Le Meridien hotel in New Delhi, and on show were the best of the best of India’s state-run capitalists as the first governance now awards for PSUs got going. Giving away the awards, union minister for heavy industries Praful Patel said in an age of intense competition, the PSUs need to evolve and become world leaders. “You are also doing a business. Your mindset needs to change,” he said, addressing the bevy of PSU honchos sitting in attendance. “You should also bring out-of-box thinking to evolve in the current competitive world.”

By the time the event wound up, one thing was clear: the state-run enterprises, despite the general image, are no pushovers. Far from it, in fact – they are the new-age fighters, recouping but far from relapsing, licking old wounds to get back in the fray.

Speaking at the function, Patel said PSUs have to evolve in the current liberalised environment. His own ministry, Patel said, is trying not to become a stumbling block in the growth of PSUs. “How can we bring change in public sector companies?” he asked, before giving the reply: the need for flexibility and freedom in PSUs.

Without taking any name, he said some public sector companies have already made an extra effort in bringing change. Patel also said he understands PSUs, despite working so hard, are not as recognised as their private counterparts. Giving example of SAIL, he said the company produces 14 million tonnes of steel but any private company producing half that quantity would have the same market capitalisation as of SAIL now.

Deaprtment of public sector enterprises secretary OP Rawat, who addressed the gathering after Patel, said India has withstood the global slowdown largely banking on the public sector units. But as a caveat, he added that the companies have to innovate and match the meets of the emerging market.

Patel said the government is also trying to bring change. Earlier, he said, the prime minister used to meet only the captains of private industry. But last year, the ministry of heavy industries and public enterprises initiated a meeting of the prime minister with CMDs of public sector units. “This was the first time such one-on-one meetings took place with the prime minister,” he added.

The minister also mentioned that PSUs work in hinterlands and remotest of areas. “Many private sector companies wouldn’t venture out in such places but the PSUs have done it,” he said. “Public sector alone has touched far and remote corners of the country.”

He said PSUs are working in the same spirit in the Naxal-affected areas and northeastern states. 

Addressing another important issue – that of attracting the young and bright to work for PSUs – Patel said, “Earlier, young people aimed to work with public sector companies but that is no more the case. They tend to work with private companies and look for greener pastures. We should provide them the same environment (in PSUs).”

Patel also praised Governance Now for recognizing public sector units.

PSU Award List