If the units run by the government is an indicator about the performance of the government then can we conclude that almost everything run by the government have failed to deliver. The problem is fixing of responsibilities and rotation of chief executives who come from IAS cadres. Specialised cadres should monitor the work and the basic problem is the one who is in the top has to take all the decisions and they themselves are in want of advice and guidance in every step. State run transport agency, pharmaceutical unit, cycle unit , spinning mills and others have turned to dust. We do not want to see the end of companies. Sense of responsibility and taking the failures to task are something the government needs to do. The problem with the bureaucracy is there is no one to take them to task. They themselves conduct the enquiries, writer their own performances and approves their own conducts. If we analyse what the people think about 97 percent of investors against bailing out sick companies, an independent research initiative has revealed.In the wake of the recent controversy surrounding Air India’s Rs 30,000 crore bailout package and the subsequent losses incurred by the Airlines due to various factors; Equitymaster, India’s leading Independent research initiative recently conducted a poll – ‘Ban Bailouts’ – in March 2012 to gauge investor opinion on this issue.The objective of this poll was to find out if the investors were in favour of the government bailing out sick companies with taxpayer’s money.About 10,325 investors participated in the poll that ran for over three months on www.equitymaster.com.The result of the poll should send out a strong message to the government – a significant 97 percent of participants voted against bailing out sick and inefficient entities like Air India.Majority of the respondents said that the root cause of this problem was inefficiency and mismanagement of the Airlines.A respondent said, “Most of the companies falls in bad situation due to their mismanagement and corrupt practices, so why people’s money should be used to bail out such bad companies!”.Citing examples of other efficient airlines, another respondent said, “Look what Emirates, Air Arabia and Itihad are doing. When all of them can make real good profit from their Indian operation, there are only three reasons why Air India cannot do. Mismanagement, Mismanagement and Mismanagement.”While a majority of investors expressed their displeasure towards bailing out sick companies, some investors also gave interesting solutions to solve this issue. If sick units are an indicator to the way the system is running it is time to wake up.
Read more / Original news source: http://manipur-mail.com/sick-companies-an-indicator/
