Well .. today’s substantial estate of prominent fiscal, economic scribblers – comprise of -optimistic scribbles on fiscal policy initiatives on ‘Consolidation of PSBs’ !
Ought we utter .. obliquely .. ancillary clause here .. the impairment .. the NPAs .. erosion of public capital base.
Though, factions subscribed to the notion – that the aforesaid era had dissipated !! However, .. seems .. *rebuttal*
Corporate restructuring, in context of private corporations, it has been a rather entrenched perception – especially with legal luminaries – that spin-offs, demergers, buyouts, restructuring – are undertaken – primarily – with fiscal legal objectives – of mobilizing Chapter VI accruals, attributable to vulnerable target’s fiscal encumbrances, i.e., inclined towards fiscal planning, rather than – as a management strategy !
Infact, have witnessed restructuring transactions – being consummated – solely with aforesaid fiscal planning objectives.
And for the factions, sans the aforesaid entrenched perceptions, especially for inefficient segment in public sector, ‘Consolidation’, strategically, could be discerned – striving for – either synonymous to – harnessing synergies or as manifestation of a ‘scapegoat’ status – upon resourceful efficient or productive organisations – for enduring and underwriting vulnerable strata of the species !!
Hitherto, especially in strata of inefficient public sector, my aforesaid perception has persisted to prevail – attributing – ‘consolidation’ – to rather being – a veil – which is conducive to betrayal of accountability, ‘profit centre’ based rational & professional organisation structures, being implemented ensuring accountability and being manifestation of professional corporate governance – & rather offending and outraging the contemporary rational concepts of transparency and performance management – enshrined in contemporary literature on financial management research!
Self sustenance ought be the underlying principle! Evaluation of any commercial institution ought be on ‘profit centre’, ‘marginal fiscal contribution’ based organisational structures ONLY !