17. Governance Notes 13

Elaborate Notes

Value Neutrality and Political Neutrality

The concepts of value neutrality and political neutrality are central to the ‘ideal type’ of bureaucracy formulated by the German sociologist Max Weber in his magnum opus Economy and Society (published posthumously in 1922). Weber, writing in the context of the rationalization of modern Western society, saw bureaucracy as the most efficient form of organization.

• Weber’s Dichotomy: Weber proposed a strict functional dichotomy between the political executive and the permanent civil service to create a balanced polity.

  • Political Executive: These are the elected representatives responsible for policy formulation. Their decisions are inherently value-laden, reflecting the ideological commitments and promises made to the electorate. They determine the ‘what’ and ‘why’ of governance.
  • Bureaucracy (Civil Service): This is the permanent, professional machinery responsible for policy implementation. It is expected to operate based on technical expertise, rules, and regulations. They are concerned with the ‘how’ of governance.

• Political Neutrality: This principle dictates that civil servants must serve the government of the day, irrespective of its political ideology, with equal commitment and loyalty.

  • Rationale: In a democracy, governments change periodically. A permanent civil service cannot have political affiliations, as this would disrupt administrative continuity and lead to a ‘spoils system’ (as seen in the 19th-century USA), where incoming governments replace officials with their own loyalists.
  • Function: Bureaucrats are expected to provide candid, evidence-based, and impartial advice to the political executive during policy formulation, based purely on merit and technical feasibility, without letting their personal political beliefs or the political interests of the ruling party influence their counsel.

• Value Neutrality: This is a broader concept requiring bureaucrats to be free from their personal values, prejudices, biases, and social-cultural beliefs while executing their duties.

  • Rationale: The core of modern administration is the ‘Rule of Law’, which mandates that laws be applied impersonally and uniformly to all citizens. A bureaucrat’s personal values (e.g., religious, caste, or regional biases) should not influence their official decisions.
  • Function: It ensures that policies are implemented in both letter and spirit, without favoritism or nepotism. For example, when implementing a welfare scheme for marginalized communities, a value-neutral bureaucrat would ensure its benefits reach the intended recipients without being swayed by personal prejudices against that community.

• Consequences of Absence:

  • Absence of Political Neutrality: Leads to the politicization of civil services. Officials may align themselves with political parties for favorable postings and promotions, leading to a breakdown of objective advice and impartial implementation. This erodes public trust and institutional integrity.
  • Absence of Value Neutrality: Results in administrative pathologies like nepotism, favoritism, corruption, and biased decision-making. It undermines the principle of equality before the law and can lead to the misuse of power and abuse of authority, where decisions are made based on personal connections rather than established rules.

Other Features of Weberian Bureaucracy

Weber outlined several structural features that, in his view, contributed to the technical superiority of bureaucracy as an administrative system.

• (a) Hierarchy: This refers to a clear, vertical chain of command, often depicted as a pyramid.

  • Historical Context: This principle of organizing large groups of people can be traced back to ancient military and religious organizations (e.g., the Roman Army, the Catholic Church).
  • Function: Each lower office is under the control and supervision of a higher one. This structure clarifies the lines of authority and responsibility, provides a mechanism for conflict resolution (appeals can be made to a higher authority), ensures discipline, and facilitates coordination across the organization.

• (b) Written Communication (Documentation): Weber emphasized that all administrative acts, decisions, and rules must be recorded in writing. This is often referred to as the principle of ‘business is conducted on the basis of written documents’.

  • Rationale: Documentation ensures continuity (institutional memory is not lost when an official leaves), provides a clear basis for accountability (it is possible to trace who made what decision), and promotes uniformity and precision. It reduces ambiguity and the scope for arbitrary action.

• (c) Rules and Regulations: The functioning of the bureaucracy is governed by a consistent system of abstract rules.

  • Function: These rules define the procedures for every task, the limits of each official’s authority, and the rights and duties of employees. This impersonality ensures that similar cases are treated similarly, promoting equity and predictability. This is a stark contrast to pre-modern administration, which often relied on the whims of the ruler.

• (d) Secrecy: Weber posited that official business should be kept secret from external actors.

  • Rationale: He believed that administrative efficiency required insulation from external pressures—be it political, economic, or social. Secrecy was seen as a way to protect the rational, technical process of administration from irrational external influences. However, this feature is highly contested today in the age of transparency and accountability (e.g., Right to Information Act, 2005 in India).

• (e) Sphere of Competence: This principle advocates for a clear definition of duties and responsibilities for each office, based on technical qualifications.

  • Function: It promotes specialization and expertise. Weber argued that administration is a technical activity, and efficiency is maximized when officials develop deep knowledge in a specific area. This is achieved through merit-based recruitment, specialized training, and a long-term career within the service, allowing officials to develop a ‘sphere of competence’.

• (f) Impartiality: This is the behavioral manifestation of value neutrality. Bureaucrats must conduct their official duties without passion or enthusiasm, in a “spirit of formalistic impersonality.”

  • Application: They must not be partial to any individual or group based on factors like kinship, caste, religion, or economic status. This is crucial for upholding the Rule of Law. In the Indian context, the persistence of patronage and bias indicates a gap between constitutional formalism (the existence of laws and rules on paper) and constitutionalism (the adherence to those principles in practice), partly due to a lack of genuine impartiality in the bureaucracy.

• (g) Discipline: A large organization like a bureaucracy requires a strict system of control and discipline to ensure coordinated action towards organizational goals.

  • Mechanism: Discipline is enforced through a clear hierarchy, a comprehensive set of rules and regulations, and a system of sanctions (punishments) and rewards. In India, the Central Civil Services (Conduct) Rules, 1964, and similar rules for All India Services, are designed to enforce a code of conduct and ensure discipline among civil servants.

Criticism of Weber

While Weber’s model has been highly influential, it has faced significant criticism, particularly when applied to the context of democratic welfare states.

• (a) Goal Displacement and Red-Tapism: The sociologist Robert K. Merton, in his essay “Bureaucratic Structure and Personality” (1940), argued that an overemphasis on rules and procedures can lead to goal displacement. This is a pathology where adherence to the rules becomes more important than achieving the organization’s actual goals. This manifests as red-tapism, where procedural delays and excessive paperwork stifle efficiency and responsiveness.
• (b) Secrecy and Corruption: The Weberian emphasis on secrecy is antithetical to modern principles of open and transparent governance. Secrecy can create a veil behind which corruption and abuse of power can flourish. The global movement towards Freedom of Information legislation (like India’s RTI Act, 2005) is a direct challenge to this feature.
• (c) Stifling Innovation: The rigid structure, hierarchy, and rule-bound nature of Weberian bureaucracy can discourage creativity, innovation, and risk-taking. Officials may become risk-averse, preferring the safety of following procedures over finding new and better ways to solve public problems. This is what Thorstein Veblen called “trained incapacity,” where an official’s skills and expertise in following rules make them incapable of adapting to new situations.
• (d) The Myth of Value Neutrality: Critics argue that complete value neutrality is a myth. Bureaucrats, as human beings, are products of their society and inevitably possess values and biases. In a developing country with vast socio-economic disparities, a value-neutral bureaucrat may be apathetic to the plight of the poor and marginalized. The modern paradigm calls for a bureaucracy committed to constitutional values like social justice, equality, and compassion, especially for the weaker sections.

Need for Civil Services Reforms

The Indian civil service, often called the ‘steel frame’ of India, has been instrumental in nation-building. However, it faces significant challenges in the 21st century. The Second Administrative Reforms Commission (2nd ARC), in its report “Refurbishing of Personnel Administration” (2008), provided a comprehensive critique.

• Successes and Failures: The 2nd ARC acknowledged the success of the civil services in regulatory functions like conducting free and fair elections, revenue collection, and maintaining law and order, which have held the country together. However, it pointed out significant failures in developmental functions, such as poverty alleviation, inclusive growth, and social empowerment.

• Identified Weaknesses:

  • (a) Centralization of Power: Decision-making remains highly centralized, with little delegation to lower levels. This leads to delays and a disconnect from ground realities.
  • (b) Colonial Attitudes: A mindset of ‘ruler’ rather than ‘service provider’ persists. This creates a distance between the administration and the citizens, fostering an attitude of arrogance and insensitivity.
  • (c) Excessive Secrecy: Despite the RTI Act, a culture of secrecy prevails, hindering transparency and public accountability.
  • (d) Politicization: The nexus between politicians and civil servants has weakened the impartiality and integrity of the services. Arbitrary transfers and postings are often used to reward pliable officers and punish upright ones.
  • (e) Red-Tapism: Complicated and opaque procedures lead to inordinate delays (time overruns) and increased project costs (cost overruns), hampering economic development and frustrating citizens.
  • (f) Lack of Accountability: The system lacks robust mechanisms to hold civil servants accountable for their performance and conduct. The safeguards provided under Article 311 are often perceived as shielding inefficient and corrupt officials.
  • (g) Bureaucracy-Centric Administration: Governance is often seen as the exclusive domain of the bureaucracy, with limited scope for meaningful participation by citizens, civil society, or the private sector.

Civil Services Reforms

Numerous committees have suggested reforms in recruitment, training, and performance management.

• Recruitment:

  • Issues:
    1. Generalist Dominance: The current system recruits generalists for all top services, while modern governance requires deep domain knowledge in areas like economics, technology, and environmental science.
    2. High Age Limit: The upper age limit (currently 32 for the general category) means that recruits enter the service with already-formed personalities and attitudes, making them less malleable to training and new values.
    3. Optional Subject Disparity: The choice of optional subjects in the Mains exam is seen to create a non-level playing field due to variations in scoring patterns and subjectivity.
  • Reforms Suggested:
    1. Service-Specific Exams: The Baswan Committee (2016), among others, has hinted at the need for specialized recruitment. The idea is that the skill sets required for the Indian Police Service are vastly different from those for the Indian Revenue Service, and a single exam may not be the best tool to select for all.
    2. Reduction in Age and Attempts: The Baswan Committee recommended a gradual reduction in the upper age limit and the number of attempts to attract younger candidates who can be better moulded to the ethos of the civil service.
    3. Removal of Optional Subjects: The committee also suggested replacing optional subjects with other papers to create a more level playing field for all aspirants.

• Training:

  • Issue: Since service and cadre are allocated before the foundation course and professional training begins, many officer trainees do not take the training seriously, viewing it as a formality before their first posting.
  • Reform Suggested: A significant reform proposal is to allocate service and cadre after a combined foundation course, based on the performance of the trainees. This would incentivize serious engagement with the training modules. Additionally, performance in mid-career training programs should be given significant weightage in promotions and postings.

• Other Reforms:

  • (a) Depoliticisation: To curb arbitrary transfers and postings, the Supreme Court in T.S.R. Subramanian vs. Union of India (2013) directed the establishment of a Civil Services Board (CSB) at the central and state levels to manage appointments, transfers, and disciplinary matters, thereby providing a buffer against political interference.
  • (b) Amending Constitutional Safeguards: There is an ongoing debate about Articles 310 (Doctrine of Pleasure) and 311 (Safeguards against arbitrary removal). While these provisions were intended to protect honest officers, critics argue they make it exceedingly difficult to dismiss non-performing or corrupt officials. Some suggest amending these articles to strike a better balance between protecting the upright and punishing the errant.

Mission Karmayogi

Launched in 2020, Mission Karmayogi, or the National Programme for Civil Services Capacity Building (NPCSCB), represents a fundamental shift in personnel management.

• Objective: The mission aims to transform the Indian bureaucracy from being ‘rule-based’ to ‘role-based’. The focus is on building specific role-based competencies rather than just following rules. It seeks to create a civil service that is creative, constructive, proactive, and technology-enabled.
• Mechanism: It operates on an integrated digital platform called iGOT Karmayogi (Integrated Government Online Training). This platform provides civil servants with access to a wide range of curated training courses from global and domestic institutions, allowing them to upgrade their skills and competencies on a continuous basis.
• Core Philosophy: The goal is to shift from a system of one-time induction training to one of continuous, lifelong learning, making the bureaucracy more agile, efficient, and citizen-centric, ready to face the complex challenges of the 21st century.

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Prelims Pointers

• The concepts of political neutrality and value neutrality were central to the ‘ideal type’ of bureaucracy defined by Max Weber.
• Weberian bureaucracy is characterized by: Hierarchy, Written Communication, Rules and Regulations, Secrecy, Sphere of Competence, Impartiality, and Discipline.
• The pathology where adherence to rules becomes more important than achieving goals is known as Goal Displacement, a concept highlighted by Robert K. Merton.
• The Second Administrative Reforms Commission (2nd ARC) noted that while Indian civil services succeeded in regulatory functions, they fell short in developmental functions.
• The Baswan Committee (2016) made recommendations regarding the age limit, number of attempts, and pattern of the Civil Services Examination.
• Article 310 of the Constitution deals with the ‘Doctrine of Pleasure,’ under which civil servants hold office during the pleasure of the President or the Governor.
• Article 311 of the Constitution provides safeguards to civil servants against arbitrary dismissal, removal, or reduction in rank.
• The Supreme Court, in the T.S.R. Subramanian vs. Union of India case (2013), directed the setting up of a Civil Services Board (CSB).
• Mission Karmayogi is the National Programme for Civil Services Capacity Building (NPCSCB).
• The digital learning platform under Mission Karmayogi is named iGOT Karmayogi.
• The aim of Mission Karmayogi is to transition from a ‘rule-based’ to a ‘role-based’ approach in human resource management for civil servants.

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Mains Insights

GS Paper II (Governance) & GS Paper IV (Ethics)

• Relevance of Weberian Model in 21st Century India:

  1. Merits: The principles of hierarchy, rules, and merit-based recruitment remain the bedrock of any large-scale administration, ensuring predictability and preventing administrative chaos.
  2. Demerits: The model’s rigidity, secrecy, and value-neutrality are ill-suited for a democratic, developing nation. Modern governance requires flexibility, transparency (RTI), citizen participation (Social Audit), and a bureaucracy that is not neutral but committed to the constitutional values of justice, liberty, equality, and fraternity. A value-neutral officer might be indifferent to social inequities, whereas an officer committed to social justice will proactively work for the upliftment of the marginalized.

• The Dichotomy of Neutrality vs. Commitment:

  • Political Neutrality: This remains non-negotiable for administrative integrity. A committed bureaucracy (one committed to a political party) is dangerous for democracy.
  • Value Neutrality: This is highly debatable. While bureaucrats must be neutral regarding personal biases (caste, religion), they must be firmly committed to the core values of the Indian Constitution. This is the concept of a ‘committed bureaucracy’ as envisioned by Prime Minister Indira Gandhi, which, while controversial, highlights the need for civil servants to be committed to the national goals of development and social justice, not a political party.

• Causes and Consequences of Politicization of Bureaucracy:

  • Causes: Discretionary powers in transfers and promotions, the rise of coalition governments leading to political bargaining for posts, erosion of institutional integrity (e.g., bypassing the UPSC), and personal ambition of civil servants.
  • Consequences: Weakens the morale of honest officers, promotes corruption and sycophancy, leads to poor policy advice based on political expediency rather than national interest, and erodes public trust in governance.

• Generalist vs. Specialist Debate:

  • Argument for Generalists (IAS): They provide a broad, holistic perspective, are good for coordination, and their field experience provides valuable grounding. This is suitable for leadership positions that require managing diverse departments.
  • Argument for Specialists: In an increasingly complex world (e.g., cyber security, trade negotiations, climate change), deep domain knowledge is essential for effective policy-making. Lateral entry is a step towards inducting specialist talent into the government.
  • The Way Forward: A balanced approach is needed, where specialists are inducted and valued, and generalists are required to gain domain expertise through structured mid-career training.

• Civil Service Reforms: Challenges in Implementation:

  • Political Resistance: The political class often resists reforms that reduce their discretionary power over the bureaucracy (e.g., resistance to implementing Civil Services Boards).
  • Bureaucratic Inertia: The civil service itself can be resistant to changes that challenge the status quo, such as performance-based evaluation or the repeal of Article 311.
  • Lack of a Comprehensive Vision: Reforms are often piecemeal rather than part of a holistic, long-term strategy for administrative transformation. Mission Karmayogi is an attempt to address this by focusing on systemic capacity building.

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Previous Year Questions

Prelims

1. With reference to the ‘Madrasa Reforms’ in recent years, consider the following statements: 1. Mission Karmayogi aims to create a more creative and constructive civil service. 2. It will use a rule-based training approach. Which of the statements given above is/are correct? (This question is a mix-up, but the statement on Mission Karmayogi can be assessed independently. Let’s rephrase for clarity.)

   • Rephrased Question: Consider the following statements about ‘Mission Karmayogi’:
     1. It aims to build the capacity of civil servants to make them more creative, constructive, and innovative.
     2. It emphasizes a shift from a rule-based to a role-based HR management.
   • Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
   • Answer: (c) Both 1 and 2 (Based on the objectives of Mission Karmayogi)

2. The main objective of the ‘Right to Information Act, 2005’ is to (UPSC Prelims - indirect application) (a) secure access to information for every citizen. (b) provide transparency and accountability in the working of every public authority. (c) ensure that the government makes policies that are citizen-friendly. (d) punish corrupt officials.

   • Answer: (b) provide transparency and accountability in the working of every public authority. This directly challenges the Weberian principle of secrecy.

3. Which of the following is/are the key feature(s) of ‘Mission Indradhanush’ as launched by the Government of India? (This is an example of how schemes are asked; a similar question can be framed for Mission Karmayogi).

   • Hypothetical Question: Which of the following is the core institutional framework of ‘Mission Karmayogi’? (a) NITI Aayog (b) Prime Minister’s Office directly (c) Capacity Building Commission and iGOT platform (d) Department of Personnel and Training alone
   • Answer: (c) Capacity Building Commission and iGOT platform

4. The idea of a ‘committed bureaucracy’ in India was primarily advocated during the time of: (UPSC Prelims - potential question based on historical context) (a) Jawaharlal Nehru (b) Lal Bahadur Shastri (c) Indira Gandhi (d) Rajiv Gandhi

   • Answer: (c) Indira Gandhi

5. Article 311 of the Constitution of India provides for: (UPSC Prelims - direct factual question) (a) The tenure and service conditions of civil servants. (b) The creation of All-India Services. (c) Safeguards to civil servants against arbitrary dismissal or removal. (d) The functions of the Union Public Service Commission.

   • Answer: (c) Safeguards to civil servants against arbitrary dismissal or removal.

Mains

1. “Institutional quality is a crucial driver of economic performance”. In this context, suggest reforms in the Civil Services for strengthening democracy. (UPSC Mains 2022, GS-II)

   • Answer Framework:
     • Introduction: Explain the link between institutional quality (rule of law, bureaucratic efficiency) and economic performance, citing examples.
     • Body Part 1: Issues in Indian Civil Services hindering institutional quality: Mention politicization, red-tapism, lack of specialization, resistance to change, and weak accountability, as discussed in the 2nd ARC.
     • Body Part 2: Reforms to strengthen democracy and performance:
       • Recruitment: Mention reforms suggested by Baswan Committee (age reduction, specialization). Advocate for lateral entry to bring in domain expertise.
       • Training: Elaborate on Mission Karmayogi’s role-based approach and continuous learning.
       • Performance Appraisal: Suggest a 360-degree performance appraisal system to make it more objective.
       • Accountability & Transparency: Strengthen RTI, implement social audits, and ensure robust whistleblower protection.
       • Depoliticisation: Argue for the effective implementation of the Civil Services Board (CSB) for insulation from political interference.
     • Conclusion: Conclude by stating that a professional, accountable, and dynamic civil service is the cornerstone of good governance and is indispensable for India to achieve its developmental goals.

2. Has the Cadre based Civil Services Organisation been the cause of slow change in India? Critically examine. (UPSC Mains 2022, GS-II)

   • Answer Framework:
     • Introduction: Briefly explain the cadre-based system in All India Services (AIS) and its rationale (national unity, experience).
     • Body Part 1: How the cadre system can be a cause of slow change:
       • Generalist Nature: Officers are frequently transferred across diverse departments, preventing the development of deep domain expertise.
       • Parochialism: Strong cadre loyalties can sometimes hinder the implementation of national policies if they conflict with state interests.
       • Resistance to Outside Talent: The system can be insular and resistant to lateral entry of specialists.
       • Guaranteed Promotions: Time-bound promotions, regardless of performance, can lead to complacency.
     • Body Part 2: Arguments in favor of the cadre system and other factors for slow change:
       • National Integration: Cadre system has been a powerful tool for national unity.
       • Field Experience: It provides officers with invaluable ground-level experience.
       • Other Factors: Blame cannot be solely on the cadre system. Political interference, lack of resources, procedural rigidities (red-tapism), and judicial delays are also major contributors to slow change.
     • Conclusion: Conclude that while the cadre-based system has certain rigidities that can slow down change, it is not the sole cause. A reformed cadre system, supplemented with specialization and lateral entry, is needed, rather than its complete abolition.

3. To what extent, in your opinion, has the decentralisation of power in India changed the governance landscape at the grassroots? (UPSC Mains 2022, GS-II)

   • Answer Framework:
     • Introduction: Define decentralization and mention the 73rd and 74th Constitutional Amendment Acts as the key milestones.
     • Body Part 1: Positive changes in the governance landscape:
       • Political Empowerment: Created a new tier of leadership, especially for women and marginalized sections, through reservations.
       • Participatory Governance: Provided platforms like Gram Sabhas for citizen participation in decision-making.
       • Responsive Governance: Local governments are better positioned to identify and address local needs.
     • Body Part 2: Limitations and challenges (incomplete decentralization):
       • Lack of Functional Devolution: State governments have been reluctant to devolve the 3 Fs: Funds, Functions, and Functionaries.
       • Financial Dependence: Panchayats and municipalities are heavily dependent on state and central grants.
       • Bureaucratic Control: Local bodies are often controlled by state-level bureaucracy (e.g., District Collectors), undermining their autonomy.
       • Elite Capture: Local power structures are often captured by dominant castes or families.
     • Conclusion: Conclude that while decentralization has fundamentally altered the governance landscape by creating democratic structures at the grassroots, its full potential remains unrealized due to incomplete devolution of powers.

4. The traditional bureaucratic structure and culture have hampered the process of socio-economic development in India. Comment. (UPSC Mains 2018, GS-II)

   • Answer Framework:
     • Introduction: Briefly describe the traditional bureaucratic structure in India, which is largely Weberian (hierarchical, rule-bound, generalist).
     • Body Part 1: How this structure has hampered development:
       • Red-Tapism: Rule-obsession leads to delays in project implementation and service delivery.
       • Elitism & Alienation: The “ruler” mindset creates a gap between the administration and the people, hindering participatory development.
       • Resistance to Change: A risk-averse culture stifles innovation needed for complex socio-economic challenges.
       • Lack of Specialization: Generalist officers may lack the technical expertise to manage specialized developmental sectors like health, education, or urban planning.
     • Body Part 2: Counter-arguments and positive contributions:
       • The ‘steel frame’ has held the country together, conducted elections, and managed law and order, creating a stable environment for development.
       • Many developmental successes (Green Revolution, space program) were achieved within this bureaucratic framework.
     • Conclusion: Conclude that while the traditional bureaucratic culture has indeed posed significant hurdles, it is not beyond reform. A shift towards a more adaptive, citizen-centric, and accountable administrative culture, as envisioned in initiatives like Mission Karmayogi, is essential for accelerating socio-economic development.

5. Initial public offering (IPO) of Life Insurance Corporation (LIC) has been a roaring success. The Government is planning to bring in IPOs for other Public Sector Undertakings (PSUs) as well. Critically examine the policy of disinvestment. (This question is from GS-III but demonstrates how governance and economic policy intersect. A GS-II version could focus on the administrative reforms needed for PSU efficiency).

   • GS-II Variant: “Improving the performance of Public Sector Undertakings (PSUs) requires not just economic but also significant governance reforms. Discuss the administrative changes needed to enhance the autonomy and efficiency of PSUs.”
   • Answer Framework:
     • Introduction: Briefly state the importance of PSUs in the Indian economy and the challenges they face, including lack of autonomy and efficiency.
     • Body Part 1: Governance/Administrative issues plaguing PSUs:
       • Political Interference: In appointments of board members and key executives.
       • Bureaucratic Control: Control by administrative ministries leads to a lack of commercial orientation and slow decision-making (violates the principle of autonomy).
       • Lack of Professionalism: Boards are often filled with political appointees or bureaucrats rather than industry experts.
       • Vague Accountability: Accountability is often to Parliament and ministries through cumbersome procedures, not based on market performance.
     • Body Part 2: Suggested Administrative Reforms:
       • Professionalize Boards: Appoint independent, professional directors through a transparent process, as recommended by committees like the P.J. Nayak Committee for public sector banks.
       • Grant Real Autonomy: Reduce the control of administrative ministries in operational matters.
       • Link Remuneration to Performance: Introduce performance-based incentives for management and employees.
       • Improve Transparency: Adhere to corporate governance norms on par with the private sector.
     • Conclusion: Conclude that for PSUs to be efficient and competitive, they must be insulated from political and bureaucratic interference and managed on professional, commercial principles. Disinvestment is one tool, but internal governance reform is equally crucial.