From a person who comes from the land of “Dhando”, one would expect a hard-nosed capitalist approach. It is surprising when Mr Modi talks about “ways sick public companies can be resuscitated, including using cash reserves from profit-earning state firms to provide lifelines to the loss-making ones “ . Check out the article at (http://www.business-standard.com/article/reuters/modi-seeks-to-revive-india-s-zombie-factories-not-abandon-them-114101300114_1.html)
This is clearly an appeasement to the votebank and is poor economics. Why throw away good money after bad?
The best way to handle unviable PSUs is to auction them- Maybe someone will have the courage or the ability to take a bet. Do not use taxpayer money. Often, the best use for a defunct PSU (defunct in business, but still carrying workers on the payroll-some real, some ghost), is to end the saga. If the private sector can kill jobs with three month to one month notice, no reason why the government should not. After all, it is Dhanda. Let us not make parasites out of our fellow Indians.
If this is the ‘reform’ or ‘development’ that Modi wants to bring about, we will soon be searching for another reformer in less than five years.