Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How?
In 1996, in order to improve efficiency and to infuse professionalism, and enable the public sector undertaking to compete more effectively in the liberalised global environment, the Government chose Nine Public Sector Undertakings (PSUs) and declared them as navaratanas. They were given greater managerial and operational autonomy in taking various decisions to run the company efficiently and thus increase their profits.
The granting of navaratanas status resulted in better performance of these companies.
Gradually, the government has decided to help these Navaratanas in becoming independent so that they can expand themselves in the global markets and raise resources by themselves from financial markets.