Why everyone loves a good PSU

No wonder Union Minister Ram Naik was celebrating today8217;s decision. For once again, the NDA Government has directed the autonomous Navr...

No wonder Union Minister Ram Naik was celebrating today8217;s decision. For once again, the NDA Government has directed the autonomous Navratna and Miniratna public sector undertakings, including BPCL and HPCL, to shell out Rs 29.50 crore to enable its blue-eyed ally Chandrababu Naidu to play host to the first Afro-Asian Games at Hyderabad.

On August 23, the Union Cabinet approved a package fixing 8216;8216;advertisement space8217;8217; for each of the nine Navratna PSUs at Rs 1 crore and each of the 41 Miniratna PSUs at Rs 50 lakh.

The PSU money is apparently to bail out the Naidu government, which is a co-host for the meet scheduled from October 24 to November 1. Thanks to the package, his government will not contribute a rupee towards the expenses.

On the contrary, the Centre will only bridge the gap in revenue and expenditure for the 2010 Commonwealth Games for which the Congress-ruled New Delhi is bidding. This was decided at a Cabinet meeting on Thursday, which also decided on steps to improve the existing Yamuna stadia.

Of the estimated Rs 103-crore expenditure at the Afro-Asian Games, the Centre will contribute Rs 63 crore, Rs 10.5 crore will come from the Indian Olympic Association, and the remainder, Rs 29.50 crore, will be plugged from the PSUs.

Vikram Verma, Minister for Youth Affairs and Sports, has written to the administrative ministries to issue 8216;8216;suitable advice8217;8217; to each of the 50 PSUs to extend the required financial assistance.

8216;8216;This assistance may be provided to the government of Andhra Pradesh, which is being separately advised to get in touch with the PSUs to firm up the manner and modality of providing such assistance,8217;8217; says Verma8217;s letter. 8216;8216;It goes without saying that the First Afro-Asian Games would enhance our country8217;s prestige before the comity of nations and this small gesture on the part of your ministry and its PSUs will help us achieve this objective.8217;8217;

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The Committee of Secretaries headed by then cabinet secretary T.R. Prasad, who is considered close to Naidu, first mooted the package. It was only after the CoS approved the package on August 13, 2001, that the Ministry of Youth Affairs and Sports approached the Cabinet with the bailout plan.