The central and state governments have completely different policy approaches with regard to PSUs. The Centre is focusing on selling off the loss-making PSUs to the private sector. Kerala, on the other hand, seeks to improve public sector enterprises to make them profitable and thereby popularize them. The Centre handed over Air India to the Tata Group when the airline had a debt of Rs 60,000 crore.

When Air India was run by the government, the airline had not opted for any actions other than hiking ticket fares when it suffered from a loss. The Left Front ruling Kerala cannot agree on this for ideological reasons. Most PSUs have assets worth crores. The PSUs operate on land handed over by the government. A left-leaning government cannot agree to turn all this into the property of a private entrepreneur overnight. While such a position is politically correct, many other realities need to be considered. The government must ensure that public sector undertakings do not depend on the government but operate on their own for profit. Appropriate recommendations have now been made by a panel of experts. The essence of the committee's recommendation, chaired by former chief secretary Paul Antony, is that the public sector should be given more freedom and autonomy to operate.

If the private sector is making a profit, it is not because of the capital they invest. Rather, it is because of the freedom they enjoy in making decisions. At the same time, even minor procedures in the public sector require the permission of the government and the finance ministry. The government has power over the company's MD and board of directors. Although this was helpful in the initial stage, it has become a hindrance in these changing times. Many recommendations have been made, such as allowing public sector companies to take out bank loans on their own collateral, authorizing them to take over capital expenditure and carry out maintenance of machinery, redeploying workers, promoting them, and allowing for contractual appointments to managerial positions. Many errors can be avoided by carrying out reviews every three months. Industry Minister P Rajeev has said that further action will be taken on the recommendations within two months. If public institutions are improved and profits are passed on to the people, it will prove to be an alternative model for the country.