It is a well-known fact that public sector units (PSUs) were critical pillars of the Indian economy and they were given a decisive push during the second five-year plan as part of our mixed economy. Since then, PSUs have seen many ups and downs in the last six decades. When the liberalisation era arrived after 1991, PSUs took a transformative course as we witnessed in the later years. Reforms not only galvanised the private sector but innovative ideas and initiatives also made their way in the management of government owned companies. There were decisive spells when we noticed structural changes which had long term implications. For instance, during the National Democratic Alliance (NDA) government (1999-2004), infrastructure development had become the major focus. This was well reflected in the significant strengthening of agencies like the National Highway Authority of India (NHAI), which has played such a crucial role in expanding the national highway network in India (both greenfield and brownfield). Urban transport got a major boost during this spell and metro railways took strong roots in Delhi, Kolkata and other places. These developments have been clearly facilitated by the creation of dedicated public sector enterprises. With a clear objective to give a serious boost to employment generation by enhancing the share of manufacturing in GDP, the successive governments had turned attention to mega infrastructure projects which were supposed to pave the way for creation of modern manufacturing hubs in the country. And this drive was also led by dedicated government-owned agencies. For instance, Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) was set up to create greenfield industrial townships. They have been created with plug & play facilities, where private investments poured in at a later stage. Gaining strength in manufacturing is an ongoing process and with the clear objective of the current government to make India a top-notch global manufacturing hub, dedicated public sector agencies will continue to significantly contribute in the coming years. While private sector involvement and participation cannot be undermined, public sector units will continue to take a lead in setting up these projects with government’s investment. This has been our experience in segments like highways, metro rails, modernisation of railways services, industrial townships, etc. Considering their recent success especially in creating world class infrastructure assets and scaling up on all fronts, the moment is apt for Indian PSUs to add new dimensions to their operational portfolio. They should start looking beyond their traditional strongholds like power, heavy industries, petroleum, steel, etc, and build strength in new areas which would be critical for the country’s future economic growth. There is a plethora of opportunities in new energy sectors like solar, wind, hybrid, hydrogen, and nuclear. They have already made moves in these domains where they need to have a commanding presence in the future. Similarly, they need to develop and adopt high end applications in information technology, artificial intelligence and quantum technology and get into the semiconductor space in a big way.
