Holding Company as Buffer for Government Enterprise

Abstract

(In their article “Can a Holding Company be an Effectiye Buffer for Government Enterprise?” (Vikalpa, July-September 1988), K R S Murthy and N C B Nath argued that the holding companies for public enterprises set up by the Government of India, so far, had been unable to buffer the operating units from governmental planning and control.

Agreeing with their thesis, Ramaswamy R Iyer says that no , holding company in the real sense of the term has been tried in the Indian public sector. S V S Raghavan points out that the Arjun Sengupta Commi'ttee had envisaged a new concept of the holding company that involved new norms for government planning and control. He elaborates on that concept and provides the rationale for the recommendation-Ed.)