The Government of India had introduced four major reforms in the public sector in its new industrial policy in 1991. The main elements of the government policy are as follows :
(1)Restructure and revive potentially viable PSUs.
(2)Closing down of PSUs that cannot be revived.
(3)Bring down government's equity in all non-strategic PSUs to 26 percent or lower, if necessary; and
(4)Fully protect the interest of workers.