By the early 1980s, the long-prevalent notion that the centrally planned economy of the Soviet Union was catching up with the West had begun to be discredited, though it was not fully discarded until the collapse of the Berlin Wall in 1989 exposed the economic ruin behind the Iron Curtain.
However, the same sense of safety evades PSBs when it comes to their valuations. This has an efficiency imperative - when judged by their returns on asset or capital employed. 11. With the Indian government thinking of new performance based norms for capital infusion, this disconnect is sought to be addressed.