LPG and Indian Administrative System
Under the forces of globalization-liberalization recent decades have seen a shift towards reduced role for the state and government in all countries. India could have not remained unaffected by these global trends. The nineties saw the replacement of ‘License, Quota, Permit (LPG) Raj’ by Liberalization, Privatization and Globalization (LPG) regime.
One natural and inevitable consequence of planned development in India has been the phenomenal growth and extension of public undertakings in varies fields of developmental activities. There was contextual change from Imperial governance to Democratic governance and from Night watchman state to the Welfare state. State assumed varied responsibilities to respond to increased expectations of people from independent state and our owned government and to achieve goals of socio-economic justice along with political democracy.
The Public enterprises were assigned a pre-eminent role in the economic development. The scheme of Industrial Policy Resolution of 1956, talks of ‘commanding heights of the economy’ through public sector enterprises. The economic development and rate of growth were accelerated and sound economic infrastructure for industrialization was established. The monopolies and concentration of wealth in the hands of few could not be prevented but self-reliance in strategic fields to reduce dependence on foreign technology was attained. Balance regional development was achieved and regional disparities were reduced. Employment opportunities in different sectors improved standard of living of people and reduced the pressure on balance of payment through export promotion and import reduction.
Notwithstanding these achievements, the public enterprises have met with enormous failures, especially in financial performance and managerial efficiency. Of the total 240 central enterprises, about 140 were