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Bail out of PSUs is desirable

For:

  • Gives employment to many

  • Even the private sector gets bailouts

  • Restore liquidity, gives chance to make the unit work

  • It will avert major industry collapse as seen during the lehman crisis which led to industry collapse

Against:

  • Very expensive

  • No guarantee it will break

  • Breeds inefficiency as hard hitting reforms with the organisation is not taken


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