Aims of Public Sector Reforms – –

1. Efficiency Improvement: –

Organize the PSUs for efficiency in terms of operations and reduce their costs through restructuring; and undertake other measures in line with better traditional management techniques.

2. Fiscal Discipline: –

Minimize the subsidies provided to the government because the effort turns into losses and is expensive.

3. Privatization and Disinvestment:

– De-list non-strategic PSUs to withdraw government stake and attract private party stake.

4. Core Activities: Better stick to the core competencies and maintain control over them only in defense and atomic energy, while other sectors could be market driven.

5. Corporate Governance: Bring innovative working models of organizational transparency and accountability to the table in relation to decisions and finances.

Key Outcomes of Reforms

1. Privatization:

A case in point is the sale of a carrier such as Air India: it has become a breakthrough in minimizing the role of government.

2. Increased Revenue:

Disinvtment has relieved these fiscals strains due to the revenues realized from it .

3. Operational Improvements:

Some PSUs in the energy and finance sectors have benefitted from the improvement of corporate governance practices. 4. Market Orientation:

Recent changes have enabled PSUs to co-compete with the private sector to transform models that are innovative and customer oriented. Challenges in Implementation

1. Political Resistance:

This is because, privatization and restructuring activities are usually faced with great resistance from the labour unions and other political players.

2. Valuation Issues:

Drawing proper value for PSUs remains problematic common problems relate to concerns of undervaluation during disinvestment.

3. Lack of Strategic Buyers:

Delaying disinvestment process Private entities’ lack of interest in buying loss-making PSU provides a key reason because of the restrictions in purchasing the company’s stakes.

4. Legacy Problems:

The structural problem include excessive human resources and obsolete technologies therefore reforms are expensive and take ages.

5. Accountability Gaps:

However, difficulties such as corruption and management inefficiency are still can be observed in some operates of enterprises.