sickness of public sector undertaking and their revival

2. AILING PUBLIC
SECTOR UNDERTAKINGS
Under Guidance: Presented by:
Mr. Vinod kumar Nitin(1411061)

4. Overview of the
presentation!!!
O PSU means
O Categories
O Name of companies
under it
O Investment and
progress
O Role
O challenges
O Sick unit
O Policy
O Disinvestment
O Conclusion

5.  The government-owned corporations are termed
as Public Sector Undertakings (PSUs) in India
,which include majority of 51% or more paid up
share capital.

6. CATEGORIES
MAHARATNA
NAVRATNA
MINIRATNA

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10. Investment in Public sector
undertakings

11. PROGRESS MADE BY PSUs

12. Major Features of PSUs

13. ROLE OF PSUs

Maximizing the rate of Economic
growth
Development of agriculture
Balanced regional development
Increasing employment opportunities
Preventing private monopoly

14. Challenges faced by PSUs
• Corporate Governance
• Development and management of manpower
• Lack of financial autonomy
• Difficulty in attracting private investments
• Political interference
• Bureaucracy, red-tapism and corruption

15. Some companies are not overcome
from these challenges faced by them,
which them as sick unit

16. SICK UNIT
Sick unit is defined as a unit or a company
which have incurred accumulated losses
equal to or exceeding 50 per cent of its
average net worth in the immediately
preceding four financial years and has failed
to repay debts to its creditor(s).

17. Sick PSUs
• Hindustan Vegetable Oils Corporation Ltd.
• Hotel Corporation of India Ltd.
• Airline Allied Services Ltd.
• Fertilizer Corporation of India Ltd.
• Hindustan Fertilizer Corporation Ltd.
• Indian Drugs & Pharmaceuticals Ltd.

18. • HMT Chinar Watches Ltd.
• J&K Mineral Development Corporation Ltd.
• Bharat Coking Coal Ltd.
• Ranchi Ashok Bihar Hotel Corpn. Ltd.
• Tungabhadra Steel Products Ltd.
• HMT Machine Tools Ltd.
• ITI Ltd.
• HMT Watches Ltd.

19. Revival scheme for sick units
1. Diversification
2. Change of management
3. Finance
4. Technical Aspects
5. Labour

20. Disinvestment can be defined
as the action of an
organization (or government)
selling or liquidating an asset
or subsidiary. It is also referred
to as ‘divestment”.
Example:-
1. Maruti Udyog
2. SAIL
3. Indian Airlines
4. Indian Oil
5. BALCO

21. Objectives of Disinvestment
Reduce financial burden
on government
Improve public finance
To maintain competition
and market discipline
To encourage wider share
of ownership

22. Current News Related to PSUs

24. • Experts' Opinions
• Anil garg (Mumbai)
• Any PSU if not of strategic importance and is making loss should be closed and
VRS given .All assets and licences should be sold by auction. It is no use reviving
since PSU employees would not work but just enjoy and make the unit sick
again.
• Sunash aggarwal (delhi)
• It is better to sell all sick units rather wasting tax payers money as already crore
of rupees have been spent without any sign of revival
• Natarajan D (Chennai)
• better sell out, will be better in the long run
• Debadutta das (Delhi)
• good step by government. Other PSU operations should be streamlined also like
management,operating efficiency.
• SNRK r (Mumbai)
• Well calculated move, they seem to have measured risk and benifits

25. Conclusion
• Government employees are not terminated if
not working properly.
• Skills are not updated in there sick units.
• Not competitive strategies with private firms.

26. Any Queries