this "obligation" to support private players is a misguided myth.
private players are often very shy in making capital investments but are always whining for huge contracts so that "they can make capital investments". Their services, as well as products, are untried and untested so the system is wary of taking a chance with them.
Look at what happened to pipav and some of the others. It was the predominantly bad assessment of technologies bought from fly by night gora/other companies at some cut rate price plus their unwillingness to correct mistakes which sank them.
But Chetak ji, a way to include private players must be made or we would eventually go the way of the soviets. The reason MII is in place is because the PSU cannot do the job to the extent befitting our size and ambitions.
That is not to say the what CSL, GRSE and MDL had done for the navy was not exemplary. Not many nations can produce 7K tons destroyers or 40K tons carriers. Bit where we want to go, we cannot afford to wait 10 years to commission a warship.
How can you pressure institutions who are guaranteed money at the till unless you bring in the private sector? And how can you make that private sector survive unless you provide that large initial contract?
There must be some support to the private ventures in the beginning in the form of longer stable contracts which, yes, would allow them to make that large initial capital investment.
My opinion, Sir.
rework the agreements with the PSUs, scrap the guaranteed cost plus 10% formula and shed the bloated and unionized staff.
Disinvest to the tune of 51 percent and let them loose to either sink or swim.
let them compete for orders without preferences marring the bid process.
no more nonsense about "who will take care of my family". Thousands upon thousands of private sector employees simply find alternate work when their firms are downsized or the employees are otherwise found redundant.
for the unorganized sector, MSMEs and others, layoffs are a daily feature of their lives when the lala tells them not to come from tomorrow because he did not get some anticipated order.
You really do not need more than 50% of the aviation PSU staff. They are mere passengers who are both a financial as well as a productivity burden on the organization because their average productivity is less than three hours a week. For this output, they consume enormously expensive company resources in terms of unwarranted benefits, needless infrastructure, and management effort.
We, the long suffering Indian public, pay for all this through the taxes levied on us.
this was a soviet era model that was long ago junked by the soviets themselves. lenin and marx are apparently alive and well in India.
wherever one sees, it is the same, look at the railways, air India, coal India, anything India and ultimately all put together it becomes screwed India and special interest groups like the miniscule organized sector always demands and grabs much more than their pound of flesh.
Just like air India is doing right now and has been doing for many years. Every employee, retired and currently working, is drawing their full medical benefits which on an average may run into many lakhs per year for the retired guys and maybe about a lakh + for the serving guys. This free for all includes parents and "dependants" who never age beyond 12 years on paper but in reality, are often married with college going kids. This is just one small aspect of the massive and unseen bottom of the ginormous PSU iceberg.
Stop pampering the PSUs and let the private players compete on an equal footing provided they have demonstrated competencies, financial muscle, plant/machinery/tooling, and the technical expertise to complete the contract.
one way forward maybe, is to form private consortiums with a few private players getting together and bidding jointly for big contracts on a work share basis.
If you start to pamper and "support" the private players in the manner that they are demanding, you are simply creating a parallel set of privately owned PSUs who will become another huge burden and drain on the Indian taxpayer.
One joker abandoned the dilli metro halfway through. What will you do if another joker abandons four kolkata class destroyers halfway through the build and settles down in better climes next to vijay mallaya or nirav modi
Just saying onlee.