Here is the division of the listed public services between Central Government and Local Government control: Central Government: - The armed forces - Justice Service - Prison Service Local Government: - Recycling - Provision of parks or open spaces. - Housing - Social Service - Local Library - Police

1. A
PRESENTATION
ON
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
 Police,
 Military,
 Public roads,
 Public transit,
 Primary education and
 Healthcare for the poor

4. ObjectivesTo
increase
capital
formation
To set up heavy
industries
To check evils
of monopoly
To achieve
economic
equality
To perform welfare
activities to set up
defense
industries
To promote
regional
equality
To increase
income of the
government
To promote
self reliance
To increase
employment

5. Low Saving
Low Capital
Formation
Decrease in
Economic
Growth
Hence, in order to accelerate
economic growth Private Industries
are setup by the Government as it
may stimulate
 Production
Other Industries
Promoting Investment
Increase In saving

6. Progress made by Public Enterprises
Plans No. of working public
enterprises of central
govt.
Total investment
(crore)
First plan 1951-56 5 29
Second plan 1956-61 18 121
Third plan 1961-66 48 953
Fourth plan 1969-74 85 3902
Fifth plan 1974-78 132 6237
Sixth plan 1980-85 207 36380
Seventh plan 1985-90 233 84869
Eighth plan 1990-97 236 202020
Ninth plan 1997-02 232 303400
Tenth plan 2002-07 217 665124
Eleventh plan 2011 -12 225 729228

7. 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

8. % share of Public & Private Sector in Capital
Formation
0
10
20
30
40
50
60
70
80
90
Public Sector (in %)
private Sector (in %)

9. 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.

10. 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. Evaluation
Profitability
of Public
Enterprises
Defects of
Public
enterprises
Measures
and
Suggestion

12. Profitability
performance of public sector industries
-100000
0
100000
200000
300000
400000
500000
600000
700000
800000
1980-81 2000-01 2005-06 2011-12
investment
net profit after tax

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

14. Comities 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

15. 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
 Labor policy
 Voluntary retirement schemes
 Board of reconstruction of public sector enterprises
 Check on extra extravagance
 Memorandum of understanding

16. 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 b the govt in July 1997.
 Professional management will result in enhancing the
efficiency and profitability of public sector enterprises.

17. 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

18. NAVRATNA COMPANIES
 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

19. Organization
of Public
Enterprises
Departmental
Organization
Public
Trust
Public
Corporation
Joint Stock
Companies
Control
Board
Holding
Company
Operating
Contract

20. Here are a list of public services.... Can you divide them into either
Central Government or Local Government Control?
The armed forces
Recycling
Justice
Service
Provision
Of parks
Or open
spaces.
Housing
Social
Service
NHS
Prison
Service
Local Library
Police