How will privatising them help the economy?
Privatising these PSUs would lead to an increase in GDP because the resources now lying unused can be productively utilised. There is a total of Rs 28,400 crore of fixed assets trapped in these companies. They employ over 3.8 lakh workers who receive Rs 7,824 crore in salaries and wages. The enterprises made a net loss of Rs 7,266 crore in 2004. Their accumulated losses have climbed to more than Rs 65,000 crore. This does not include the acres of land in prime areas lying wasted.
