Union Minister HD Kumaraswamy Advocates for “Re-Investment” to Revive Ailing PSUs

In a recent interview with Deccan Herald, Kumaraswamy emphasised that his focus is not merely on replacing the term ‘disinvestment’ with ‘re-investment’. Instead, he is committed to reviving PSUs by bringing in new investments and reforms. “I’m not merely looking to replace the word ‘disinvestment’ with ‘re-investment’. My aim is to bring investments back and revive PSUs,” Kumaraswamy stated.

A New Vision for PSUs
As a member of the Cabinet Committee on Economic Affairs, Kumaraswamy is working within the frameworks of Prime Minister Narendra Modi’s Make In India and Atmanirbhar Bharat initiatives. His objective is to ensure that PSUs play a significant role in driving India’s GDP growth, despite the challenges posed by their current state.

Kumaraswamy acknowledged the difficulty of his task, noting that the primary resistance comes not from the Prime Minister but from bureaucratic officers who hold a sceptical view of the viability of PSUs. “They (officers) have a different opinion about PSUs,” he said. “There are some decisions made already. I want to reverse such decisions in order to bring reforms and revive PSUs. I’m trying to convince those concerned about this.”

Reviving Key PSUs
As part of his efforts, Kumaraswamy is focusing on reviving key PSUs that have either shut down or are on the brink of closure. Among these are Hindustan Machine Tools (HMT), the Visvesvaraya Iron & Steel Plant, and the Rashtriya Ispat Nigam Ltd (RINL). These entities, once considered pillars of India’s industrial landscape, have faced significant challenges in recent years, prompting concerns about their future viability.

Kumaraswamy, who is serving his first term in the Union Cabinet as the MP from Mandya, Karnataka, has taken a proactive approach since assuming office two months ago. He has already conducted over 50 meetings focused on the revival of PSUs, signalling his determination to make a tangible impact in this sector.

Challenges Ahead
Despite his commitment, Kumaraswamy is well aware of the uphill battle that lies ahead. Reviving these PSUs will require not only financial investment but also significant policy reforms and the support of various stakeholders within the government. The minister’s push for re-investment comes at a time when many PSUs have been struggling due to outdated technology, inefficiency, and a lack of competitive edge in the market.

However, Kumaraswamy remains optimistic, hinting at positive developments in the pipeline related to his portfolios. His approach contrasts with the broader trend of disinvestment and privatisation that has characterised much of the Modi administration’s economic strategy.

A Potential Turning Point
Kumaraswamy’s push for re-investment could mark a turning point in the government’s policy towards PSUs. If successful, it could lead to the revival of several key industries and contribute to the broader goals of self-reliance and economic growth under the Atmanirbhar Bharat initiative. The coming months will be crucial in determining whether Kumaraswamy’s vision can translate into tangible outcomes for the country’s public sector.

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