• 5 CPSUs on the eve of the first plan• 249 CPSEs as on 31st March 2010• CPSEs are major players in their respectivesector...
• In 2008-09 CPSEs contributed Rs 151,543crore in the form of excise duty, customs duty,corporate tax, interest on central...
• Three forms of PSUs– Departmental Undertakings– Government Companies– Public Corporations
Departmental Undertakings• Most prevalent before independence• Many exist till today– Eg. Railways, post and telegraph, de...
Some functions of internalmanagement• Strike a balance between social motive and efficient financialmanagement of the ente...
Contribution of PSUs• Assess in terms of– Contribution to GDP– Employment– Strategic output– Led to rapid industrialisatio...
BRPSE• Board for Reconstruction of Public SectorEnterprises• Estd. 2004• An advisory body to advise the govt on thestrateg...
Liberalisation• Sectors that were exclusive preserve of the PSEswere opened to the private sector• CSPEs therefore are fac...
Disinvestment• Began in 1991-92• The current policy on disinvestment wasapproved in 2009• The objective of disinvestment p...
Revival of sick PSUs• Number of sick PSUs– 2003: 111– 2010: 45• Sick CPSEs brought under the purview of SickIndustrial Com...
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Psus

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Psus

  1. 1. • 5 CPSUs on the eve of the first plan• 249 CPSEs as on 31st March 2010• CPSEs are major players in their respectivesectors– Eg. NTPC, ONGC, CIL
  2. 2. • In 2008-09 CPSEs contributed Rs 151,543crore in the form of excise duty, customs duty,corporate tax, interest on central governmentloans, dividend and other duties and taxes• Employed 14.91 lakh people (excluding casualworkers) in 2008-09• The share of gross value addition in CPSEs inGDP stood at 6.3 % in 2009-10
  3. 3. • Three forms of PSUs– Departmental Undertakings– Government Companies– Public Corporations
  4. 4. Departmental Undertakings• Most prevalent before independence• Many exist till today– Eg. Railways, post and telegraph, defence• Features– Financed by appropriations from the govt treasury– Their receipts are also credited into the treasury– Their financial operations subject to the budget,accounting and audit controls similar to govt activities– Their permanent employees are civil servants– They do not have a separate entity of their own; forma part of the govt
  5. 5. Some functions of internalmanagement• Strike a balance between social motive and efficient financialmanagement of the enterprise. Social motive cannot be an excusefor mismanaging the funds and thereby making losses• Personnel management is very important. Training and education ofthe employees• Where the company is in competition with other firms it shouldfollow an aggressive market policy• Lay out clear-cut statement of objectives and obligations of theundertaking• Lay out a corporate plan• Link the plan with the national plan• Appropriate inventory management• Choice of technology
  6. 6. Contribution of PSUs• Assess in terms of– Contribution to GDP– Employment– Strategic output– Led to rapid industrialisation– Redistribution of wealth– Welfare programmes– Contribution to the govt treasury– Created opportunities for employment: representation ofSCs and STs in the management– Promoting balanced regional development– Saving and earning foreign exchange
  7. 7. BRPSE• Board for Reconstruction of Public SectorEnterprises• Estd. 2004• An advisory body to advise the govt on thestrategies, measures and schemes forstrengthening, modernizing, reviving andrestructuring of public sector enterprises.
  8. 8. Liberalisation• Sectors that were exclusive preserve of the PSEswere opened to the private sector• CSPEs therefore are faced with competition fromboth the domestic private sector companies andthe large MNCs• The monopoly market conditions have given wayto oligopoly and competitive market conditionsand there is intense competition in the market• The market shares of CSPSEs in industries such astelecom, oil refinery, coal, power, steel andtransportation has declined over the years
  9. 9. Disinvestment• Began in 1991-92• The current policy on disinvestment wasapproved in 2009• The objective of disinvestment policy is todevelop people’s ownership of CPSEs and toshare in the their wealth and prosperity whileensuring that Govt equity does not fall belwo51% and govt retains the management control
  10. 10. Revival of sick PSUs• Number of sick PSUs– 2003: 111– 2010: 45• Sick CPSEs brought under the purview of SickIndustrial Companies (Special Provision) Act,1985• BRPSE set up in 2004

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