1. Public Sector Enterprises In india

2. Objectives of Public Sector enterprises
Rapid economic growth and industrialization
Earn return on investment
Promote redistribution of income and wealth
Create employments
Assist in small scale development and ancillary industry development
Promote import substitution

3. Growth and performance of PSUs
Industrial Policy Resolution of arms , ammutations, atomic energy, railway transportation – monopoly of Central Govt.
Another six by state govt .- coal , iron, steel , aircraft , ship building , telephone, telegraph etc.

4. Growth of Public enterprises
Sr No
Plans
Investment ( Rs Crore)
Total number of enterprises 1
1st plan 29 5 2
2nd plan 81 21 3
3rd plan
953 48 4
4 th plan
3902 85
5th plan
6237
122 6
6th plan
18,225
186 7
7th plan
42,811
221 8
8th plan
1, 18 , 492
237 9
9th plan
2,01,500
238 10
31st march 1999
2,73,700
235

5. Constraints Set up not only for commercial purposes
Low returns on investment
Prevalent of sick units
Could not bear market fluctuations .

6. The New Industrial Policy 1991- Priority Areas
Infrastructure
Oil exploration
Technology development
Strategic products

7. Industries reserved for PSU - 8
Defense equipments
Atomic energy
Coal and lignite
Mineral Oils
Mining of iron ore , maganese, chrome, gypsum , sulphur,etc
Mining of copper, lead, zinc etc.
Railways

8. Public Sector Ratnas - Navratnas
BHEL
BPCL
HPCL
IPCL
NTPC
ONGC
SAIL
VSNL
GAIL
MTNL

9. Organisation of PSU
Ministry

10. Departmental undertakings
a) Financed by treasury
b) Subject to budgeting by govt.
c) Permanent staff are civil servants
d)It Is subordinate to ministry

11. Government Companies:
a) 51% OR above is owned by the govt
b) Directors are appointed by the govt
c) Creatd under companies act
d) Created by executive decision of the govt without the approval of the parliament.
e) Funds obtained from both the parties.
f) Its employees not civil servants .

12. Public Corporation: Statutory corporation
a) State owned
b) Created by special law
c) Corporate Body
d) Independently financed
e) Not subjected to laws for govt departments
f) Not governed by govt rules and regulations .

13. Govt control over PSUs Direct impact Indirect Impact
Parliamentary Impact
Direct impact
Indirect Impact

14. Direct impact
Questions in parliament
Annual Reports
Approval of Budgets
Inquiries by committees

15. b) Indirect impact
Ministers and executives accountability
Board membership
Audit systems
By appointing adhoc commissions

16. Nationalisation Have control over strategic sectors
Put an end to mismangement
Ensure utilisation of resources
Protect the interests of consumers
Take necessary actions for the development industries

17. Other Sectors Private Sector Joint Sector Co-operative Sector
a) Functional Co-operatives
b) Multipurpose Co-operatives
c) National Level Co-operative federations.