Public sector units helped in economic growth: Venkaiah Naidu

"The PSEs have contributed immensely to the countrys economic growth. Over the years, the PSEs have helped the country in building a sustained industrial base and technological competencies in a number of areas," Naidu said at an event marking the Diamond Jubilee Year celebrations of state-run miner NMDC here. 

He said the Public Sector units were established in the country during 50s and 60s in the country for regional development by reducing regional imbalances and creating employement. 

The PSEs have played a pioneering role in building the infrastructurebe it telecom, transportation, power, irrigation or road network. To heavy machinery, the public sector units served the needs of country, he said. 

Coal, oil and natural gas are the other key areas where the public sector companies have made immense contribution to the national economy, he said. 

"I don't know why they went to (manufacturing) watches and scooters and also they went to some hotels also. I am of the firm opinion that business of the government is not to do business. The government has to create infrastructure and provide facilities. This is where we did some mistakes. PSUs should be for infrastructure and for development of that area," Naidu opined. 

Achieving self-sufficiency, reducing imports to save precious foreign exchange, promoting exports, removing regional disparities to ensure balanced development, preventing monopolies in private sector and providing employment were among the main objectives in establishing scores of PSEs across the country, he said. 

To a large extent, many PSEs worked towards fulfilling these objectives and provided employment to lakhs of people. Of course, there were also public-owned companies which failed to deliver the goods and that is a different story altogether, the Vice-President pointed out. 

"They have to introspect and countrys political leadership and policy makers should also introspect what are the areas where we have core competence and to focus and invest and the areas which have to be given to private sector. That should be the new thinking," he stressed. 

Naidu congratulated NMDC on posting a profit (before tax) of Rs.4,293 crores in financial year 2017 and for emerging as one of the top profit-making Navratna public sector companies in the country. Naidu called it as Nations Main Development Corporation. 

He further said interest rates are coming down because cash which was earlier there in "bedrooms and bathrooms" has come back to banks after demonetisation. 

"Let there be discussion on whether demonetisation was good or bad or how it should have been implemented. It will continue. How much black or white it is the duty of RBI and it will verify ," Naidu added. 

Union Steel Minister Chaudhary Birender Singh said that due to NMDCs mining activities, backward areas like Bastar in Chhattisgarh have grown economically.