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Can private players effectively safeguard public interest?

DNA
Wednesday, November 4, 2009 22:35 IST
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Mumbai: Let regulatory bodies keep tab on corporates
Privatisation of essential services is a good move, since it is more economical and beneficial. It also means more efficiency and accountability as it increases competition, which means good service as everyone wants to be on top. But I also think that there should be regulatory bodies, to keep a tab on the companies. This will ensure that corporate groups don't indulge in any trickery and consumers aren't exploited. For example, when Mumbai International Airport Limited started charging high fees, the regulatory body pulled it up due to which they had to withdraw it. Regulatory bodies ensure fair play and give consumers the power to fight back, if they think they are being oppressed. Other services like transport should be privatised, because the authorities don't listen to common man's woes.
--MS Kamat, consumer lawyer

No logic behind pvt distribution of water
In Mumbai, we are talking about the rise of water scarcity as the population is increasing; but everybody in the city is getting water. The mode of retrieving water may be legal or illegal. This, itself suggests there is enough water in Mumbai. The problem is with the distribution of water since no one can generate water in the city. Even private companies cannot generate water. So what is the logic behind giving the distribution to private companies when the water authority has the technological equipment and expertise? When the distribution system will be given to private owners, water will be unaffordable for many. Even if it is given to private companies , what about the leakage problem. If private companies can change the pipelines then why can't the government authority do the same?
--Sitaram Shelar, project coordinator, YUVA

Guarantee interests of common man
Privatisation has helped many sectors, since services and productivity has improved enormously. For example, in the telecommunications sector, where there were no private players, it was quite difficult even to get a connection. Privatisation brings the service provider into the competitive domain and helps in improving efficiency and productivity. Some services like law enforcement and defence must remain in the ambit of the government. Moreover there are some sectors where privatisation may not deliver. For example, if you privatise hospitals, then they won't go to rural areas since they will seek to make profits from their business in urban areas alone. Private engineering and medical colleges have made education unaffordable.
--DK Joshi, principal economist, CRISIL

Railway transport system needs to be privatised
Some sectors need to be privatised. The railway is one such sector which needs to be privatised soon. Everyday there are complaints regarding delay in the services, overcrowding, safety and some mishaps across the country. Reliance Energy is a shining example of what privatisation has done. Earlier the government-run BSES would take hours to restore electricity. Today we know the status of a problem and get information through a phone call. But the flip side is if essential services are privatised, the efficiency will improve but the tariff will also be hiked. So in terms of money it might pinch some consumers. Similarly, after privatisation the service at Mumbai airport has improved, in terms of cleanliness and ambience, but they will recover it through raising other charges.--Hardik Rajgor

It brings in professional approach to redressal
Privatisation of essential services has become a necessary evil, since it brings more professionalism. It gives more choices to consumers although they have to pay more now. But privatisation can increase the gap between the rich and poor. The government has to ensure that there are enough safeguards to protect consumers' interest. Private players have definitely improved the services and I don't mind paying a little more for it. But at the same time, everyone can't afford the price rise. In a way, privatisation works in favour of consumers as they have more options. Privatisation of the Mumbai airport and power utilities has been a good idea since they are being maintained well. Services like civic garbage cleaning and railways should be privatised, since it will increase the efficiency.--Rahul Nigam

Privatisation provides better services
In the long run, I think privatisation helps. The best example is Reliance taking over the control of electricity in Mumbai. It is so much better than other places where there is hours of load shedding. It is a high time for such a change because private companies give better quality of service than government organisations. And I'm sure people don't mind paying little more, if they are satisfied with the service. For instance, Mumbai airport was crowded and unorganised. Today after privatisation it is much better. Other services like garbage cleaning and transport should be privatised. Because we all know how government offices work. Privatisation only makes the service better and not worse because of the competition. Common man is the biggest beneficiary here.
--Garima Sahney

Essential amenities can't be handed to pvt companies
I'm not against privatisation because it brings efficiency in the service sector. The advantage is thatemployees get paid well so in return they work efficiently. The ambience of corporate groups is better than government sector, which motivates the workers to do their best, this keeps consumers satisfied. But I don't want essential goods like water and civic amenities to be handed over to private organisations since they will make these services unaffordable. For private players, profits are paramount, so essential services must be under the control of the government. The infrastructure must be given to private players, since they ensure value for money. In short, privatisation has pros and cons too. Therefore, one has to be careful about what services are to be privatised.
--Shyju John

Soaring costs will make it tough for people
Privatisation is welcomed only by a certain section of society. Though everything has advantages and disadvantages, from various experiences we can conclude that privatisation may make things more professional, but it is not a good idea. Essential services will become costly (on the pretext that there will be quality) and eventually will go out of bounds of ordinary people. A small hike for some might may put pressure on the poorer sections. Hence, there should be a central body which should be able to keep a check on the private companies so that common man its not fooled. We had witnessed protests by various political parties, when Reliance suddenly increased the tariff. So if we are talking from the perspective of a common man, privatisation in all sectors is surely not required.
--Amita Mehta

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