SPEECH BY HER EXCELLENCY THE PRESIDENT OF INDIA, SHRIMATI PRATIBHA DEVISINGH PATIL AT THE PUBLIC SECTOR DAY AND TO PRESENT AWARDS TO THE CENTRAL PUBLIC SECTOR ENTERPRISES

New Delhi, 11th April 2011

Ladies and Gentlemen,

I am pleased to once again participate in the Public Sector Day. I am informed that since its inception last year, the idea of a Day focused on this sector, is gaining ground. In this context, I appreciate the efforts of the Ministry of Heavy Industries and Public Enterprises, as well as the Standing Conference of Public Enterprises - SCOPE - in carrying forward this initiative. Today is an occasion to reflect on how policy makers, as well as those involved, or working or connected with this sector, can prepare for the future and continue to contribute to nation building, with which this sector has a deep historical bond.

The Public Sector, indeed, traces its origin to the years immediately after independence, when we set about the task of nation building. It was felt that for economic growth, the development of infrastructure and heavy industries, as well as widening the nation's industrial base were essential. It was in this background, that the public sector was conceived. Its enterprises were to undertake activities that needed large investments, had long gestation periods, and where private capital was not forthcoming. Thus, the public sector became one of the instruments of social change and economic development.

Today, as our economy expands and operates in the new global economic order of rising competition, there is need for higher standards of performance, as well as continuous up-gradation and revitalization of working methodologies and operations of enterprises. The Public Sector is now also working in an environment where a large number of economic activities have been thrown open to the private sector. Therefore, the test is to be nationally creative, globally competitive and efficient, ensure on-time deliverability and provide employment.

The actual realization of the projected growth of the nation requires the contribution of all sectors, industries and businesses. Our Central Public Sector Enterprises or CPSEs, on their part, must continue to perform well in existing areas, as well as explore new markets, enter into new areas and begin new activities. As we deliberate and take stock of the performance of CPSEs, we can be happy that they have met a number of challenges thrown up by the rapidly changing economic scenario. Over the last few years, more and more of them have listed their shares on stock exchanges, thereby subjecting themselves to greater scrutiny. I am informed that many of their recent Initial Public Offers have set new records, proving their market acceptability. I am confident that CPSEs will continue to do well in the future also, for which a blueprint for ensuring continued success is necessary. In this perspective, the formulation and implementation of appropriate policies assume greater significance.

I would like to draw attention to what needs to be done in the future, if we have to ensure that CPSEs prosper and grow at an even faster rate. High priority should be accorded to developing human skills in the area of management and innovation. There should be a focus on investing in the next generation of technology, and in creating more capacities, as well as product development and process improvement. Appropriate relationships with other institutions, public and private, local and global, to enhance their own technological competence, could be established. Transparency in working and operations, which includes financial accountability and probity, is of utmost importance. The empowerment of profit making CPSEs and restructuring of sick and loss making ones, are important issues which need to be addressed on a priority basis. We need to have a more open mind to deal with the complexities of the issues involved, while addressing the problems of sick and loss making Units. SCOPE, can play its role by actively channelizing views from various CPSEs to the Government.

I reiterate, what I had suggested at the last Public Sector Day function, that the corporate sector should partner with the agricultural sector. I would like the PSEs to come up with a new viable model of engaging with the farming community that takes into account local conditions, and attracts and creates confidence in farmers by making them stakeholders. In such a model, the corporate sector would become contributors to and, in turn, gain from bringing rural prosperity and enhancing agricultural productivity. Developing rural-industry linkages is, I believe, a part of Corporate Social Responsibility.

The twin issues of Corporate Governance and Corporate Social Responsibility, indeed, hold the key for sustained future success. Both these concepts are not new but very important. These entail a philosophy wherein organizations serve the interests of society, by taking responsibility for the impact of their activities on various stakeholders and the environment in all aspects of their operations. I am happy that the Department of Public Enterprises has taken proactive steps on both Corporate Social Responsibility and Corporate Governance, by bringing out comprehensive guidelines. The implementation of these guidelines in the right spirit, are equally important. There is no doubt that CPSEs have contributed to the social good, by providing civic amenities such as drinking water, sanitation, education, healthcare and also helping out in natural disasters like droughts, floods and are also contributing to sports development. I feel that the next logical step should be the assessment of the extent of their compliance to the guidelines, so that necessary remedial measures can be taken.

As India's economy grows, our international profile is also growing. As a result, a large number of Indian companies are now doing business abroad, and these include CPSEs. In my visits abroad, I have noticed this trend. Public sector units are helping in the creation, as also expansion of infrastructure in many countries. The importance of executing work on time and with efficiency, quality and transparency, must always be kept in mind, so that a positive impression is created about India and that lasts long after the work is over. The Indian economy is moving towards becoming a global power, I am sure that the public sector will continue to play a crucial role in building our global image in the economic and industrial world, in the years to come.

I take this opportunity to compliment the management and employees of CPSEs, who have been felicitated and conferred with Maharatna and Navratna status today. This represents recognition of their performance over the years, and all of them should work even harder in the future, and fulfill the expectations of the people. The release of the Public Sector Flag today, is yet another significant milestone. The Flag signifies shared goals and ambitions, and should inspire public enterprises in their work.

I congratulate all of you for organizing the second "Public Sector Day" and convey once again, my good wishes to the recipients of awards.

Thank you.

JAI HIND.