The time is now

The UPA government has already developed a reputation for delaying and stalling reform. Much major legislation is yet to be passed,and even that reform which requires only administrative effort has been slow,and in some sectors non-existent. Its unfortunate,therefore,that reports have emerged that some decisions which have already been taken might be reversed,as well. This newspaper reported on Monday that the Lucknow-based public-sector company Scooters India might not be sold to the private sector in the manner envisaged by a cabinet decision taken in May. Setting back the disinvestment schedule after a call has already been taken is the worst possible signal to send to Indias entrepreneurs,investors and citizens.

There are concerns reportedly being expressed that,given the Uttar Pradesh elections are less than a year away,this may not be a politically perfect moment to make the sale. Scooters India is loss-making,and has about 1,500 employees; it has been making losses for years,unable to improve efficiency and respond nimbly to a changing market. The government has had to pay its expenses out of its own pocket. This is precisely the sort of company its necessary that the Centre get out of supporting,precisely the kind of productive asset that India and UP needs to see better managed in order to kick-start the manufacturing sector. The future belongs to the political force that understands and articulates this,not the one that looks backward,pretending the problem doesnt exist. The Centre is struggling fiscally,and cannot afford to keep on supporting sick companies. Nor can it allow further pessimism about its reformist credentials to take hold. On both these counts,as well as on that of politics,the sale should go ahead.

This may not be the largest of PSUs,but yet the decision that is taken will be closely watched. It will determine whether UPA 2 understands its political future depends on owning reform,or whether it holds fast to the idea that it can drift,rudderless and policy-less,to successive victories in UP and at the Centre in 2012 and 2014.