The Government of India had introduced four major reforms in the public sector in its new- industrial policy 1991. Their main elements are as follows
(i) Restructure and revive potentially viable public sector units.
(ii) Close down public sector units which cannot be revived.
(iii) Bring down government equity in all non-strategic public sector units to 26 % or lower, if necessary.
(iv) Fully protect the interest of workers.