PSU IN MEDIA
Merging oil PSUs to create a goliath bad idea instead privatise HPCL or BPCL
NEW DELHI . Before creating an ‘integrated public sector oil major’ as finance minister Arun Jaitley spoke of on Wednesday, the government would be well advised to look at its downsides. Even globally, the history of M&As succeeding is a poor one, imagine doing this in a PSU environment.
A key element of any M&A, it is obvious, is savings in manpower and resources—when the government is unable to even privatise PSUs due to fear of job losses, what are the chances it can shut down various departments in the merging PSUs?
Merging Air India and Indian Airlines took years with the work cultures very different and each airline continuing to follow different policies for a long time, and there was even a tussle on whether AI or IA pilots should be flying certain routes.
To the extent decision-making in any PSU is influenced by bureaucrats and politicians, or by the fear of the CAG/CBI/CVC, one integrated oil company is even more risky since even bigger decisions will be taken under pressure or put on hold.Financial Express
Read Also : ERES-XXXIX incorporated as wholly subsidiary of REC Power Development& consultancy Limited
News Must Read
- Shri. Bikram Ghosh takes charge as Director (Finance) in WCL
- SBI to change debit cards maintenance normal from 1 April, 2024
- NMDC excels at Governance Now 10th PSU Awards
- NTPC Group ties up JPY 30 billion funding from JBIC
- Jabalpur Airport connects Madhya Pradesh to other cities
- Best Organisations for Women title to PowerGrid
- Air India Faces Heavy Fine from DGCA of Rs 80 Lakh
- NCL's mega achievement; surpasses 500 Million Cubic Meters of Overburden
- RailTel bags major order from CDAC worth Rs 36 crore
- ICRA withdraws long term rating of NCDs of ONGC