Role & growth of public sector in india by Sakshi Mittal

1. The Role And Growth Of Public Sector
In India

2. AGENDA
• Objectives
• Development
• Significance
• Evaluation
• New Industrial Policy of 1991
• Organization

3. Public Sector
• Owned ; Managed and Controlled by the Govt.
• Funded by the Govt.
• Welfare Oriented
• The public sector includes such services as
(a) Police,
(b) Military,
(c)Public roads,
(d)Public transit,
(e)Primary education and
(f)Healthcare for the poor

5. Development made by Public Enterprises
Twelfth Plan 2014-15 235 1834050
2015-16 244 1938795

6. Significance
• Capital formation
• Contribution to domestic product
• Basic industries
• Development of infrastructure
• Import substitution
• Export promotion
• Less regional disparities
• Socialistic pattern of society
• Resources of economic development
• Promotes employment
• Growth of Ancillary industries
• Sick mills

7. % share of Public & Private Sector in Capital Formation

8. Minerals and Metal Trading Corporation
• Largest public sector trading body
• Also imports imp. Commodities like ferrous and non ferrous metals to the industries
as well as the agricultural products.
• Known as MMTC ltd.

9. The State Trading Corporation
• Government owned or controlled firm
• Engages in procurement of raw materials & export of commodities
• Helps Indian manufacturers to find market overseas for their product like oil, sugar
etc.

11. Profitability performance of public sector industries

12. Defects of public enterprise
• Social objectives
• Lack of good management
• Lack of efficiency
• Long Gestation period
• Construction expenditure
• Industrial disputes
• effect of location
• Irresponsible labour
• Underutilization of production capacity
• High capital output ratio
• Overstaffing
• Over capitalization

13. Committees setup by the govt. to make the public
enterprise efficient and raising their profitability
• Chargla Commission 1958
• Krishna Menon Commission 1959
• Admintrative reforms Committee
• F. Mohammad Committee 1980
• Arjunsen Gupta Committee 1998

14. Measures and suggestions
• Sector corporations
• Reforms in the board of directors
• Efficient management and able workers
• Inspection of public enterprises
• Proper auditing
• Full utilization of productive capacity
• Commercial outlook
• Increase in efficiency
• Labour policy
• Voluntary retirement schemes
• Board of reconstruction of public sector enterprises
• Check on extra extravagance
• Memorandum of understanding

15. New industrial policy 1991
• In place of 17 industries only two have been reserved exclusively for public sector and
these atomic energy and railway transport.
• Shares of public sector enterprises are being disinvested.
• Sick public sector enterprises will be subject to the same policy as private sector
enterprises.
• Public sector enterprises will be made more efficient through the medium of
memorandum of understanding.
• 50 central public sector enterprises are listed on domestic stock exchanges as on April
30,2012.
• Navratans: nine major public sector undertaking were declared as Navratans by the
govt in July 1997.
• Professional management will result in enhancing the efficiency and profitability of
public sector enterprises.

16. NAVRATNA COMPANIES
• Bharat Heavy Electricals Limited
• Bharat Electronics Limited
• Bharat Petroleum Corporation Limited
• Hindustan Aeronautics Limited
• Hindustan Petroleum Corporation Limited
• Mahanagar Telephone Nigam Limited
• National Aluminium Company Limited
• National Mineral Development Corporation Limited
• Neyveli Lignite Corporation Limited
• Oil India Limited
• Power Finance Corporation Limited
• Power Grid Corporation of India Limited
• Rashtriya Ispat Nigam Limited
• Rural Electrification Corporation Limited
• Shipping Corporation of India Limited
• GAIL (India) Limited