Government Ownership and Management of State-Run Enterprises like Air India, BSNL, and NTPC

The government's role in managing state-owned enterprises (SOEs) such as Air India, BSNL, and NTPC is a topic of much debate, especially in the context of India. While some SOEs have undergone significant reforms, others continue to face challenges in terms of operational efficiency and public perception.

Current Status of Air India

Unlike its counterparts, Air India is no longer solely under government control. In 2023, it was privatized and handed over to the Tata Group, marking a significant shift in the company’s ownership. However, the transition was marred by internal and external challenges.

Under previous government administrations, Air India was significantly damaged. The government, during this period, illegally handed over lucrative routes to private carriers, leaving Air India with unprofitable and outdated routes. This systematic destruction by the government left the airline struggling to recover and maintain its former glory.

While Air India has made some progress under its new management, it still faces numerous challenges, including debt and operational inefficiencies. However, the future of Air India remains uncertain, with private investors looking for long-term profitability and stability.

The Case of BSNL

BSNL, on the other hand, stands as a prime example of a state-run enterprise that has failed to adapt to changing market conditions. Due to its inability to offer cutting-edge technology and services, it has lagged behind private competitors such as Airtel and Jio. BSNL is often seen as a relic of an outdated era in telecommunications.

In the face of declining revenues and poor performance, BSNL has not received adequate budget allocations from the government. This underfunding has contributed to a downward spiral in the company's operations, leading to inefficiencies and further financial losses. Such inefficiencies often result in employees moonlighting for competitors, exacerbating the company's financial and operational problems.

Moreover, the large number of employees in BSNL poses a significant political risk for the government. The government fears losing votes if it were to cut down the workforce, thereby derailing any potential privatization plans for the company.

NTPC: A Success Story

Unlike Air India and BSNL, NTPC, or National Thermal Power Corporation, has been managed relatively well and has shown commendable performance in the energy sector. Its success can be attributed to its robust management and focus on generating revenue, leading to its continued growth and stability.

The government's reluctance to privatize NTPC is due to its strong financial position and steady performance. NTPC's ability to remain profitable has made it a preferred choice for government investments and a model for other state-run enterprises.

However, the government's aversion to privatization is not just about the financial stability of these enterprises. It aligns with broader political and ideological considerations. The government's preference for its own direct control over SOEs is often driven by a desire to retain economic levers and maintain political control.