Across the world, the performance of state-owned enterprises depends not on ownership, but on who governs them.
China’s SAIC Motor Corporation, a state-owned enterprise, has become a global automobile powerhouse — leading the electric vehicle market with profits, exports, and technological innovation.
In contrast, Maharashtra’s state-run corporations are trapped in chronic losses and administrative decay, not for want of resources but because of political occupation of boards.
China’s SAIC: State Control with Expert Management
SAIC is fully owned by the Chinese government, yet its board is composed of engineers, economists, and industrial managers.
Appointments are merit-based, tied to performance metrics and global benchmarks.
The enterprise functions as a commercial corporation, not a political fiefdom.
Strategic oversight remains with the state, but operations are handled by professionals accountable for profit, efficiency, and innovation.
The result — SAIC earns billions in profit and sells electric cars in over 60 countries.
Maharashtra’s Enterprises: Political Appointments, Administrative Paralysis
In Maharashtra, most state-run enterprises — from agriculture and transport to finance and industry — have Directors appointed through political quotas on APMC, MSRTC, CIDCO, MHADA, MSEB etc.
Positions on boards are routinely given to MLAs, MLCs, and party functionaries, often without relevant expertise.
The very institutions meant to promote industrial growth and employment are converted into extensions of political patronage.
Losses are written off, inefficiency is tolerated, and performance is secondary to political loyalty. In Maharashtra as per the report of Comptroller And Auditor General Report (CAG REPORT) of 2022-2023 out of 110 State Run Enterprises 45 Enterprises are running into heavy losses of Rs. 3623.40 Crores and said loss is reached upto 5000 crores in the recent time. We will bear these losses every citizen of the state will be put in difficulty to recover these losses.
At the central level, the pattern continues — many PSUs have MPs and political stalwarts on their boards, diluting professional accountability.
The Result: Governance Without Competence
When technical posts become political rewards, decision-making loses direction.
Projects stall, procurement inflates, and innovation dies under bureaucratic control.
Instead of competing globally, state corporations depend on budgetary bailouts.
Where China’s state enterprise strengthens the nation’s economy, India’s often strain it.
Conclusion
The contrast is sharp and instructive:
- China appoints experts; India appoints politicians.
- SAIC earns profit; Maharashtra’s enterprises earn losses.
Until India’s states adopt merit-based appointments and professional governance, public enterprises will remain political properties, not productive institutions.
When we public spirited persons raised Voice on the subject by way of filing Public Interest Litigation in the Hon’ble High Court not a single member of public come forward to take the cause as it is not the job of one Individual but of a Collective Mission. Even I remembered when I filed Public Interest Litigation in the said subject matter in 2006, the said matter was even discussed by the Committee appointed for restructuring of State Run enterprises which are running into losses as the said Committee was headed by Former Chief Secretary Sh. Sharad Upasani, and as per report though the said committee recommends to follow certain policy in the enterprises but their recommendations were accepted by the Government and then in frustration said Shri. Sharad Upasani resigned from the said committee and till today nothing constructive happened to control the losses incurred into State Run Enterprises by the Government.
Issued for Public Interest by Ad. Anil Bugde, Advocate High Court, Bombay.
