Need for privatisation of public sector undertakings.

4. Indian Public Sector Enterprises always have
been key catalysts of Economic Growth
Public sector enterprises have been set up to
serve the broad macro-economic objectives of
 higher economic growth
 self-sufficiency in production of goods and
services
 long term equilibrium in balance of payments
 low and stable prices

5.  While there were only five Public Sector
Enterprises with a total investment of Rs. 29.00
crore at the time of the First Five Year Plan, there
were as many 248 PSEs (excluding 7 Insurance
Companies) with a total investment of Rs.
6,66,848 crore as on 31st March, 2011

6.  PSEs influence the growth in the economy and
are affected by the overall growth in the
economy.
 The gross value addition by all the PSEs grew
by 10.03 per cent during the year. As against
the nominal GDP growth of 18.80 per cent in
2010-11

7.  The turnover of all PSEs stood at Rs. 14,73,319
crore as compared to Rs. 12,44,805 crore in the
previous year.
 During the year 2011-12, the PSEs earned
foreign exchange equal to Rs. 97,004 crore as
compared to Rs. 84,224 crore in 2010-11.

8.  The total employee strength in PSEs was 14.44
lakh in current year as compared to 14.90 lakh in
previous year.
 The total strength of the employees in PSEs has
gone down by 45,981 persons due to
superannuation, voluntary retirement etc.

9. Aggregate Profit and Loss of PSEs
 The profit of profit making PSEs stood at Rs.
1,13,770 crore in 2011-12 compared to Rs.
1,08,434 crore in 2010-11.
 The loss of loss making PSEs, on the other hand,
was Rs. 21,693 crore in 2011-12 compared to Rs.
16,231 crore in 2010-11.

10.  Oil & Natural Gas Corporation Ltd.
 NTPC Ltd.
 Indian Oil Corporation Ltd
 NMDC Ltd.
 Bharat Heavy Electricals Ltd.
 Steel Authority of India Ltd.
 Coal India Ltd.
 GAIL(India) Ltd.
 Oil India Ltd.
 Power Grid Corporation of India Ltd.

11.  Air India Ltd.
 BSNL
 MTNL
 Hindustan Photo Films Manufacturing Co. Ltd.
 Indian Drugs & Pharmaceuticals Ltd.
 Fertilizer Corporation of India Ltd.
 Air India Charters Ltd.
 Hindustan Fertilizer Corporation Ltd.
 ITI Ltd
 Hindustan Cables Ltd.
The top ten loss making Companies covered nearly
92.55% of the total loss

12. public sector should be privatized. Saying amongst people that private
sector is meant for profit it will not concern the general public. But we are
ignoring some major points. If they are meant for profit they will also bring
revenue to the country, more people will be employed. Think for a instance
if a new manufacturing plant is set up, would not that need labour.
We talk about government schools providing education, there are not
even chairs and notebooks for students.
The developments in two sectors—telecommunications and airlines—
powerfully illustrate what the private sector can accomplish when the
public sector withdraws, even if partially
 Privatization should be done to a certain limit. Under privatisation there
wont be any corruption and no delay in work process .

13.  increased returns on investment due to privatization.
The sales and returns to sales increase on average by 23% and 21%,
respectively
It ends political interference in PSUs.
 Private entrepreneurs are better equipped to take commercial decisions
than government-appointed managers
The multiple mega corruption scandals have exposed the gaping holes
in our governance system.
 Any fix for this problem must include scaling back the role of the
government in activities in which private sector has the necessary
competence.

14.  Treatment of water by private companies through
structural adjustment policies
 Privatization of education to improve the quality of
education as well as to reduce costs.
 Revival of state-run telecom Bharat Sanchar
Nigam (BSNL) and Mahanagar Telephone Nigam
(MTNL)
 Airport privatization