The role and growth of public sector in india
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Transcript of The role and growth of public sector in india
A
PRESENTATION
ON
The Role And Growth Of Public Sector In India
AGENDA
Objectives
Development
Significance
Evaluation
New Industrial Policy of 1991
Organization
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
Objectives To 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
Low SavingLow Capital Formation
Decrease in Economic
Growth
Hence, in order to accelerate economic growth Private Industries are setup by the Government as it may stimulate ProductionOther IndustriesPromoting InvestmentIncrease In saving
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
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
% share of Public & Private Sector in Capital Formation
0102030405060708090
Public Sector (in %)
private Sector (in %)
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.
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.
Evaluation
Profitability of Public
Enterprises
Defects of Public
enterprises
Measures and
Suggestion
Profitabilityperformance 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
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
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
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
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.
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
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
Organization of Public Enterprises
Departmental Organization
Public Trust
Public Corporation
Joint Stock Companies
Control Board
Holding Company
Operating Contract
Here are a list of public services.... Can you divide them into either Central Government or Local Government Control?
The armed forces
Recycling
JusticeService
ProvisionOf parksOr open spaces.
Housing
SocialService
NHS
Prison Service
Local Library
Police