Why Can’t Even Strong Leaders Like Modi Sell Off Public Sector White Elephants?

India's public sector units, such as Air India and BSNL, face numerous challenges in terms of operational efficiency and profitability. Despite the frequent claims that these entities are 'white elephants' and need to be sold off, the reality is more complex than it may appear.

Current Status of Air India and BSNL

Air India is expected to be sold off in the current year, a signal that the government is finally taking steps towards privatization. However, BSNL, on the other hand, does significant work in the remote areas of the country, laying fiber optics cables and providing essential services. Some may argue that this work is critical, and selling these units would mean leaving this work undone. As Sriram mentions, it is important to understand that someone has to do the 'dirty job.'

Government's Position and the Debate on Public Sector Reform

India's government has a pragmatic approach to public sector units. According to Sriram, it is not always about selling off enterprises just to make money, as there are exceptions like BPNCL and HPCL. These units have shown a more business-oriented approach. However, for many public sector units, the focus is not on profitability but on providing jobs and other social benefits.

Government officials often face the challenge of balancing profitability with the social duties. The question of whether strong leaders like Modi should prioritize financial reforms over social responsibilities is a complex one. As Sriram notes, the government's decision not to privatize these units is not due to a lack of effort but due to a broader set of considerations.

The Role of Strong Leadership and Public Opinion

Modi, often hailed as a strong leader, is faced with a dilemma when it comes to public sector reform. Surprisingly, being a strong leader doesn't always mean taking the path of least resistance. Modi's biggest weakness, as Sriram points out, is a fear of losing position and facing inquiries about past scams. This fear often leads to maintaining the status quo rather than making changes that might be unpopular.

Another factor is the fear of losing a certain lifestyle and the associated perks. These leaders, like Modi, are often seen publicly living a relatively opulent lifestyle. Bringing about significant changes in the public sector could mean curtailing these perks, leading to resistance from various quarters.

The question itself is based on a misconception. A business enterprise is supposed to earn profits. In the case of public sector units, the emphasis is more on social responsibility than on profit maximization. Environmental and social concerns often figure more prominently due to their critical role in providing essential services.

Moreover, Sriram highlights that unions and employees would fiercely resist any sell-offs that lead to downsizing the workforce. The idea of free lunches and job security is deeply ingrained in these units, making any sale or reform process extremely challenging.

Conclusion and the Role of Democracy and Elections

Modi's strength lies in the people who support him, his personal conviction, and his overall strength as a leader. However, his primary goal is to stay in power and implement his developmental agendas, which include public sector reform. Elections are a essential part of democracy, and Modi must appeal to the public to win them.

While some might see selling off public sector units as a clear way to improve efficiency, such decisions often face strong resistance. BJP members and the government must navigate the complex interplay between public opinion, social responsibilities, and the desire for profitable reforms.

Strength in leadership doesn't always translate to bold moves, but often comes with the necessary compromises to maintain stability and public support. In the case of public sector reforms, this means balancing the need for efficiency with the needs and expectations of the workforce.