JD(U) opposes govt move to appoint 'outsiders' to PSUs

Slamming the government move to rope in private sector professionals to steer public sector undertakings, Janata Dal (United) chief Sharad Yadav has said it is "another example of crony capitalism" and demanded that the Centre reconsider its decision.

Demanding that such appointments be made from the public sector talent pool or government and not from outside, Yadav said privatisation is not the answer to the problems faced by public sector undertakings (PSUs), while noting that many retired PSU officials were serving in senior positions in private firms.

"I don't agree with the move of the government to appoint chief executives working in big corporate houses to our government PSUs. I would like the government to review this and appoint people from their own cadre or the government, but definitely not from the corporate houses. It will be another example of crony capitalism," Yadav said in a statement.

If they are from the corporate sector, then they will be prone to giving favour to private companies, he claimed.

The JD(U) said many PSUs are struggling but asserted that the problems could be tackled easily.

"I am sure that privatisation is not the answer for every problem. It is not out of place to mention here that in most of the private companies, our retired officers of PSUs are handling their affairs in view of their vast experience in that particular field," the veteran parliamentarian said.

The central government earlier this month appointed private sector professionals to head two large public sector banks -- Bank of Baroda and Canara Bank, and there are reports that similar appointments could be made in other government undertakings.