India would not have been the India of Today without the PSUs says Mr. Praful Patel at the 2nd AIMA PSU Summit
New Delhi, September 4, 2012: The All India Management Association organised its second annual PSU conference with the theme ‘Grow, Transform and Sustain- The Mantra for Indian PSUs’ here in the capital today.
In India, Public Sector Enterprises play a very significant role in the process of nation building and towards fuelling its economic growth. In recent years, the increasing globalization and the integration of Indian economy with global markets has thrown up new opportunities and challenges to the Public Sector Undertakings. The preferential treatment given to PSUs by the state as a customer is on the decline and they now have to compete with other private organizations on equal terms. The PSU Summit provided an ideal platform to deliberate on some of the critical issues being faced by the Public Sector Enterprises in India today that act as a hindrance to their growth and discuss transformation strategies.
Delivering the inaugural address, Minister for Heavy Industries & Public Enterprises, Government of India, Mr. Praful Patel said, “We have to acknowledge that had it not been for the Public Sector, India would not have been the India of today. The Public Sector Enterprises have changed the economic profile of our country and facilitated a well defined landscape. A large part of India’s remote areas have been developed by the contribution of the Indian Public Sector. PSU’s today have evolved over the last few years and come of age and are aggressively competing not just in India but globally. As a nation we will have to introspect and come out to change the perception towards the Public Sector.”
Echoing the Honourable Minister’s views, Mr. Sudhir Vasudeva, Summit Chairman & Chairman & Managing Director of ONGC, one the largest PSUs in India set the theme by saying, “PSU’s contribute to about 22% of India’s GDP. PSUs over the years have become more confident and aggressive and have transformed a complete cycle of industrialization. They have braced challenges of competition and have emerged intact and resilient. Regulation should be a key agenda that has to be taken up to maintain a fine balance between the freedom to perform and adhering to guidelines. Also, sustainable reporting should be an integral part of corporate governance.”
Stressing the need for Public Sector Undertakings to challenge themselves and break out of the rut, Mr. Arup Roy Choudhury, Chairman, SCOPE and Chairman & Managing Director, NTPC Limited said, “PSUs have exhibited a robust performance since the 90s with manifold increase in the net growth and profits. They have been instrumental in building infrastructure for other segments of the economy. Public Sector Enterprises have been the backbone of socio-economic growth and are at the forefront of Corporate Governance. Their contribution to a balanced regional growth is also of major significance.”
Emphasis was laid on the established examples of already successful PSUs during the welcome address by Mr. Rajiv Vastupal, President, AIMA & Chairman & Managing Director, Rajiv Petrochemicals Pvt.Ltd. who said, “PSUs have played a vital role in industrialisation. Their role now becomes more vital as India is fast becoming a global economic powerhouse. It is thus time for PSU’s to support India’s integration into the world environment and facilitate a global support chain for sustainable development. AIMA aims to bring to light these issues by virtue of this interesting summit and a line of eminent dignitaries and their views.”
Mr.O.P Rawat, Secretary, Department of Public Enterprises, Government of India, added, “PSUs facilitate an environment for growth, transformation and a sustainable future. For them to compete globally it is essential to focus on their assets, brand power and human resources to grow stronger.”
The role of leadership to guide PSUs through the challenges of an ever-expanding economy was addressed at length in the first session by luminaries such as Mr. RS Sharma, Former Chairman & Managing Director, ONGC, Mr. RK Bahugana, Managing Director, RailTel Corporation of India Ltd., Mr. S.K Roongta, Chairman & Managing Director, National Seeds Corporation Limited and Mr. Akhil Bansal, Chief Operating Officer, KPMG India.
Mr. R. S Sharma, Former Chairman & Managing Director, ONGC Limited was the Session Chairman. He said, “PSUs are extremely rich in talent and it is essential for leaders to capitalise on this talent to strategise the way forward to build excellence and brace competition.”
Giving the views of the private sector Mr. Akhil Bansal, Chief Operating Officer, KPMG India added, “The sheer volume of PSUs in the GDP is so significant and no private sector can meet that. They are the market leaders in many sectors and are no longer restricted to just public utilities. However, what is needed is a balance between strategic and commercial role. Also, retaining talent and extracting vale out of the resources should be an integral part of the HR agenda of the PSUs. More collaboration between the PSUs and the private sector will accelerate the development process. This should not just be driven by government initiatives like PPP but also a conscious effort on part of the Public Sector to collaborate with the private sector maybe by outsourcing a function that is not their strength.”
The second session revolved around the issue of Transforming Governance and Building Resilient Organizations. The expert panel included Mr. S K Roongta, Managing Director, Vedanta Aluminium, Mr. Arun Rath, Chairman & Professor, Centre for Corporate Governance & Social Responsibility, International Management Institute and Mr.
The last session of the day witnessed Organisation heads and experts discuss and debate the importance of Human Resources in the development of Businesses and the need to retain talent. The session was chaired by Dr. A.K Balyan, Managing Director & CEO, Petronet LNG Ltd. and the other speakers were Mr. B.B Pattanaik, Managing Director, Central Warehousing Corporation and Ms. Shalini Pillay, Partner, People Change Management Advisory Services, KPMG India.
Expressing his views Managing Director & CEO, Petronet LNG Ltd, Dr. A.K. Balyan, said,”talent is the most import aspect of any organisation which drives growth. Organistions, particularly knowledge-driven oganisations, must identify, recruit, nurture and retain talent to perform well and excel.”
This unique Summit by AIMA saw over 250 participants with best minds and heads of Public Sector Enterprises, private sector deliberate the importance of PSU’s in today’s economic scenario, Challenges faced and the growth strategies required for a sustainable future.
About AIMA
The All India Management Association (AIMA) is the national apex body of the management profession in India. Over the last five decades, AIMA has contributed immensely to the enhancement of management capability in the country.
AIMA has a broad base of 63 Local Management Associations including two cooperating LMAs abroad, with a membership crossing 30,000 in number. AIMA is a non-lobbying organization, working closely with Industry, Government, Academia and students to further the cause of the management profession in India. AIMA is represented on the Boards of India's premier Business Institutions like Indian Institute of Management – IIMs. AIMA is also represented on Boards of Government bodies including the All India Council for Technical Education, National Board of Accreditation, National Productivity Council to name a few.
AIMA makes a salutary contribution to management learning and practice in the country by offering various services in the areas of testing, distance education, research, publications and management development programmes. AIMA brings to the Indian managers, the best management practices and techniques through numerous foreign collaborations with professional bodies and institutions. AIMA is a member of the Asian Association of Management Organisations (AAMO) and works closely with several international management institutions like INSEAD, St Gallen Foundation etc. in organising international conferences and management development programmes
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