Streamlining to run efficiently the state run enterprises is an oxymoronic idea. It is just not possible. Incentives are just not there, no body is going to get richer if the company is more profitable, as the stock is not listed where investors can reward the managers of a well run company. The state run enterprises, atleast in India are there to provide patronage by the politicians and bureaocrats and also also are a source of perks for them.

Time to privatize them or shut them down. Why does India need Air India? Its capacity to suffer infinite losses and still be able to fly is putting pressures on other players in the industry. Why does government need to run any business?

Like we used to say at IIT, fundas are just not clear!





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