The government had formed a high level team to look into the functioning of the public sector undertakings (PSUs) and to recommend ways and means in which they could be strengthened and made more profitable. The recommendations were to be presented by 17 October 2000. The team had a meeting on 14 February and it was here that problems arose. Some members of the team that drew up the report have raised objections to the report prepared. The objecting members are known to be those representing labour unions.
The recommendations are:

? All PSUs should be gradually privatised.
? While appointing heads of PSUs, the selection body should be neutral and well qualified. Three persons well qualified from within or outside the PSU should be short-listed for the post and interviewed before being appointed.
? The head should be appointed on the basis of his qualification and capabilities and not on the basis of his political affiliation. He should be familiar with the working of the PSU and should have worked in a similar capacity before.
? Appointments and promotions should be made by an independent and separate body to be formed.
? A high-level body should be formed to provide guidance, exert control and to direct the working of PSUs.
? The work and functioning of PSUs should be spelt out clearly, management should be leased out, and the government should act as a controlling body only and not be involved in the day-to-day functioning of the company.
? Although there are unions in essential services organisations like aviation, water supply, electricity, banking and fuel supply, it should be made clear to the workers that they will not be allowed to go on strike nor disrupt work in any way. In fact, strikes should be banned in organisations that produce essential commodities or provide such services.

? If workers perform well they should be rewarded and if they function poorly they should be punished.
? Excess labour must be laid off or removed.
? Leakage must be controlled.
? A government agency must be formed to provide control and guidance to PSUs.
? If annual financial statements and papers are not properly made or kept, action has to be taken against the PSU head and the chief of the financial section of that PSU.
? The government must help these PSUs become strong to survive in the open market system.