Chapter8

PUBLIC SECTOR
IN INDIA
In a mixed economy, both public as well as private sectors
rs
Indian economy is a mixed economy.
of India aims at establishing socialistic
their distinct significance. The industrial policy of government
have and to accelerate the process of growth,the
of the society. With a view to achieve this objective
pattern of the public sector. Public enterprise refers
Government of India has recognized the strategic significance
and controlled by the government.
to that industrial institution which is owned, managed
"Public enterprises are industrial, commercial economic activities
and
According to S.H. Khera, the central and the state
central govermment or by the state government jointly by
or
carried on by the
government."
These are owned and managed by the
Thus, publicsector includes all state owned enterprises. of these enterprises isto
government. Government has full control over these enterprises. The objective
promote social welfare along with earning profits.
hote
1 . Objectives of Public Enterprises/Public Sector
(1) To Increase Capital Formation: Savings that constitute an important component of
capital formation are generally low in less developed countries. This retards the rate of
economic growth. Thus, to accelerate the rate of economic growth, such industries aresetup
bythe government as may stimulate production, encourage other industries, increase savings
and promote investment.
(2) To Set up Heavy Industry: Heavy and key industries need substantial amount of capital
which is beyond the capacity of private entrepreneurs. To fulfil this requirement, the
government has to set up public enterprises.
(3) To Promote Economic Equality: With a view to avoid concentration of economic power, i
is essential that key industries in the economy are run by the
state; as private sector enterprises
may result in concentration of economic power. Thus, public sector
enterprises help to
achieve economic equality.
(4) To Check Evils of Monopoly: Public enterprises are useful with a view
to checking the evis
of monopoly growth in private enterprises.
(5) To Perform Welfare Activities: It has become almost essential for the welfare
state to
increasingly participate in industrial and trading activities of the economy in order to fulfil is
growing commitments of welfare of its citizens.
(6) To Set up Defence Industries: The state depends upon public sector enterprises for 15
defence needs. Defence industries cannot be left to the uncertainties of the private
enterprises.
 in India
Public
Sector
103

(7) To Promote Regional Equality: From the viewpoint of industrial development, there are
lots of regional inequalities in India. On the one
hand, there are industrially developed
regions like Maharashtra, Gujarat, Tamil Nadu and West Bengal. On the other hand, regions
like Odisha, Bihar, Jharkhand, Rajasthan are relatively backward. Public enterprises can be
established in these industrially backward regions. As a result of it, regional equality can be
promoted.

(8) To Increase lncome of the Government: Public enterprises are expected to generate income
for the govermment. Ihe government may utilise this income for development programmes of
nation.

gTo Promote Self-reliance: Self-reliance in the field of capital goods and in technical
know-how is another objective of public sector enterprises.
(10) To Increase Employment: Public sector enterprises are also expected to generate
employment opportunities in the economy. In these enterprises, job security is more, so
people preter employment in public enterprises.

2 . Development of Public Enterprises/Public Sector

Public enterprises were first developed according to the format of Industrial Policy of 1948
Industrial Policies of 1956, 1977 and 1980 further enhanced the funtional limits of public enterpr
has been reduced. Share of
the economy. In the new industrial policy 1991, area of public enterprises
cent in the year 2012-13. In
public enterprises in Gross Domestic Product of the economy was 20.4 per
there
eleventh plan, share of public enterprises in total capital formation was 21.9 per cent. 2014-15,
In

were 235workingpublicenterprises in the country involving capital investment nearly 18,34,050crore.

of
Table 1. Progress of Public Enterprises
No. of Working Public Enterprises Total Investment
Plan
of Central Government Rcrore)
29
First Plan (1951-56)
18 121
Second Plan (1956-61)
48 953
Third Plan (1961-66)
85 3,902
Fourth Plan (1969-74)
132 6,237
Fifth Plan (1974-78)
Sixth Plan (1980-85)
207 36,380
233 84,869
Seventh Plan (1985-90)
236 2,02,020
Eighth Plan (1992-97)
Ninth Plan(1997-2002) 232 3,03,400
217
6,65,124
Tenth Plan (2002-07)
225
13,28,027
Eleventh Plan (2011-12)
17,44,321
234
Twelfth Plan (2013-14)
18,34,050
235
(2014-15)
Economic Survey, 2015-16)
2014-15;
oource: Public Enterprises Survey,
104 Indian Economy

3 . Role or Significance of Public Enterprises/Public Sector

Public enterprises play a significant role in the economic development of our country. Followina
in the Indian economy:
ponts may be noted to explain the increasing role of public enterprises
(1) Capital Formation: According to Prof. Nurkse, capital formation plays a significant role in
the economic development of an underdeveloped country. In underdeveloped countries
low capital tormation. This problem can he
savings rate is very low. Low savings lead to
overcome through public enterprises. The following table shows the relative contribution of
India.
public and private sectors in capital formation in
Sector in Capital Formation
Table 2. Percentage Share of Public and Private
Plan Public Sector(in per cent) Private Sector(in per cent)
First Plan 46 54 9
54 46
Second Plan
Third Plan 63 37

Fourth Plan 61 39
o ne olevod.s
Fifth Plan 58 42
Sixth Plan 53 47
Seventh Plan 48 er ccer 52 e
Eighth Plan 45 55
Ninth Plan 33 67
Tenth Plan 24 76
Eleventh Plan 21.9 78.1
(Source: Statistical Outline of India, 2009-10)
(2) Contribution to Gross Domestic Product: Share of public sector in gross domestic
product has tended to increase over time. It was just 14 per cent in 1992-93 while in 2012-13,
it was 20.4 per cent.
(3) Basic Industries: It is only through public enterprises that we can lay strong foundation for
basic industries in India. Large-scale industries like iron and steel, heavy machines,
fertilizers,
atonicenergy, arms and ammunition, etc., could be established only under public sector. This
sector hasgiven new life to sick units of textile industry. The contribution of public sector in
developing basic industries and in attaining self-sustained growth is remarkable.
(4) Development of Infrastructure: Development of infrastructure comprising of
transport,
power, communication, basic industries, etc., is a precondition of growth. Expenditure
on tne
development of infrastructure is known as social overhead costs. Pace of industrial
development cannot be accelerated without their establishment. Their development requires
huge capital investment, which cannot be mobilised by the private sector. Moreover, these
projects do not promise high profits. The private entrepreneurs would therefore be reluctant to
undertake them. Their development is possible only in the public
sector.
(5) Import Substitution: For a favourable balance of trade, it is essential that goods imported
from other countries are produced within the country or their indigenous substitutes alc
developed. Public enterprises are playing an appreciable role in the field of import
substitution. This sector is producing various kinds of medicines, electronic goods, watches,
 otroleum products, and
of foreign exchange. railway
equipments. Thus public 105
(6) Export Promotion: enterprises save sizeable
coctor exports consistPublic sector in amoun
India has
CorDoration (STC)
ot
and the railway engines, steel,
Minerals
promoted exportsts of the
a
wonderful job in the area of and Metals Trading machinery etc. The country.
State
Public
eianificant contribution in the export Corporation (MMTC)
Trading
of public enterprises field of promotion.
export promotion.Thus,
have
public sector has made done
were
(7) Less Reg 1,03,071 crore.
egional Disparities: There
In year 2014-15,
export earnings
a

the one hand,

Punjab, Gujarat and are notable regional disparities in
other hand, Odisha,
Bihar and Maharashtra are the country.
While, on
public sector enterprises has Madhya Pradesh are industrially developed
example, three big steel plants played equally backward. regions, onof the
in the
a
significant role in reducing theseExpansion the
regions only. For the sake of public sector have been disparities. For
are being set economic established
development of backward regions, in the
backward
up there.
(8) Socialistic Pattern of public enterprises
pattern of society. In suchSociety: Industrial Policy of India aíms
limits and public
a
society, inequality of distribution is at establishing socialistic
enterprises are kept within the warranted
Investment in public sector servesexpected to
generate the much needed surplus for
as a check on
the concentration of growth.
private sector. Adopting the policy of economic power in the
goods to the poorer sections of the societyprice discrimination the Government sells
at reduced rates. essential
raised to reasonable standard. Wages
Public sector enterprises thus set
of low-paid
employees are
a trend for the
pattern of the society. socialistic
(9) Resources for Economic Development: Less
developed countries like India need lot of
resources for economic development. Only a small
percentage of profit in the private sector is
reinvested, the rest is distributed as dividend among the shareholders. But the
generated in the public sector enterprises is largely reinvested on surplus
development of those very
enterprises or on the economic progress of the country. Moreover, the dividend
government from public enterprises is reinvested in
received by
development works likeinfrastructure
development. The Government can thus generate resources for its development plans
through public sector enterprises. In year 2014-15, the public sector enterprises earned a
profit of 1,03,003 crore.
r o m o t e Employment: Public enterprises are generating more and more employment
opportunities. As on March 2012, public sector enterprises offeredemploymentto176.1lakh
Ople. Public sector employs 59.5 per cent of total workers employed in organised sectorin
India.
(11) orowth of Ancill/ry Induustrial Units: Public enterprises are very largein size. These
products from small and ancillary
units. Public
terprises purchase variou intermediate

prises have helped in arowth of ancillary industrial units in

the country, offeringmore
ahd more employment opportunities.
 106
Indian Eoonomy
(12) Rehabilitation of Sick Mills: Public sector has rendered notable service in
SIck industrial units.
re-habilitating
Many public enterprises were set up to take over sick private sector units
Government has taken over sick private sector units on the ground of employment
and
continuation of production.
4 . Evaluation of Public Sector Enterprises
Scope of public enterprises in India is consistently increasing from Plan to Plan. So, the argument
that public enterprises are not much useful or that
private enterprises are more significant in the context of
Indian development programmes is baseless. In fact, both public and
private sectors play an important role
in the proper growth of a mixed economic order. Evaluation of
public enterprises in India is studied under
the following heads: (1) Profitability of Public Sector
Enterprises, (2) Main Defects of Public Sector
Enterprises.
4.1 Profitability of Public Sector Enterprises
Critics of public enterprises are generally of the view that these enterprises are losing their
importance.FHowever, this view is gradually changing. Though profitability is not the sole
of public enterprises, yet to increase the saving of the nation, investment in motivating force
future and rebuilding of plant
etc, profit plays an important role Profitability also measures the efficiency of management. Table 3
thatin 1980-81 public enterprises incurred losses of about 203 crore, but in year shows
public enterprises increased to 1,03,003 crore. In year 2014-15, 157 public 2014-15, profit of
profits, 77 enterprises were incurring losses and one public enterprises were earning
enterprise neither reported any profit nor loss.
In2014-15, 157 profit earning PSEs eaned a net profit of 7 1,30,363 crore while 77
incurred a loss of 27,360 crore. loss making PSEs
Table 3. Performance of Public Sector
Enterprises
Particulars 1980-81 2000-01 2010-11 2013-14 2014-15
Investment (R crore)
18,207 3,31,372 9,49,499
Net Profit after Tax
17,44,321 18,34,050
( crore) 203 15,653 92,077 1,29,109 1,03,003
Percentage of Profit 1.1
(after paying tax) on Capital Employed 4.72 9.70 7.40 5.62
(Source: Public Enterprises Survey, 2014-15; Economic
Survey, 2015-16)
Public enterprises have started generating profits since 1981-82. This
is largely due to efficient
management and more utilization of production capacity.
enterprises has improved since 1991-92 and has shown increaseAlthough the performance of publc sector
PSUs is less in comparison to in profitability but still profitability of
private sector units.
4.2 Main Defects of Public Sector
Public Sector Enterprises/Causes of Low Profitability in
(1) Lack of Efficiency: Efficiency of
public enterprises is generally lower than prívate
enterprises. This is because of several reasons such as
enterprises seldom commit themselves to the growth managers oforganisers of public
and
"and welfare these enterprises
Generally, they evade from their responsibilities. Moreover, these enterprises
tapism. Decisions and their implementation invariably take long time. suffer from red
This adversely affects
the efficiency. Late Prime Minister Rajiv Gandhi held that
inefficient management is
fundamental weakness of public enterprises. the
 Sector in India
Public

Lack of Good ood 107

(2) Management: Lack of good
Politicians
enterprises. Po
enterprises. These
or retired bureaucrats management is yet
are
ye another drawback of
public
interest. Lacking good
politicians use
public enterprises as a appointed on themanagerial
ma
posts of these
government has failed tomanagement, public enterprises fail to
means to
promote their
political
adopt a suitable achieve their objectives. Ihe
sector enterprises. policy to attract good
Social management in the public
(3) Objectives: Public
objective, but social welfare enterprises
is also
do not
have profit maximization as their sole
Sometimes public enterprises sell their considered as the

products objective of public enterprises.

the structure of the at reduced
prices with a view to
economy and to
public sector is not based upon the help the poorer section of the society. Price strengthen
to low objective of profit policy of the
profitability these enterprises.
of maximization. Low price fixation leads
(4) Long Gestation Period: Most of the
intensive. These enterprises have public sector enterprises are
long gestation period. There is a large-scale and capital-
establishment these enterprises and the start of
of long time lag between the
higher cost and lower the profits.
the production.. Longer this gestation gap,
(5) More Construction
Expenditure: Public enterprises are largely established outside the
city limits, and at new places. Bhilai,
established industrial towns. Lot of Rourkela,hasDurgapur and Pinjore were the newly
residential houses for the workers and expenditure been incurred on the construction
of
managers. Such huge investments cause low profits.
(6) Industrial Disputes: Public sector workers often
between workers and
indulge in industrial disputes. Disputes
management are almost a regular feature. This
production efficiency resulting in low output and high cost. Rate of profit badly
affects
remains low. consequently
(7) Effect of Location: Aprivate enterprise is located at a place that suits the objective
of profit
maximization. Public enterprises, on the other hand, are located in backward areas with a
view to promote balanced regional development. These places fail to offer and developed
economically viable environment. As a result, cost factor is pushed up and profitability
reduced. Sometimes location of PSUs is influenced by political considerations like a PSU is
set up in the constituency of the minister, but that location may not be economically viable.
(8) Lack of Competition: Lack of competition is an important obstacle in the way of progress
of public sector enterprises. Healthy competition is almost a pre-condition for improvingthe
quality of the products and stability of prices. Because of the monopolistic tendencies of
public enterprises, not much attention is paid to the cost factor. On the other hand, these
enterprises, unlike the private enterprises, cannot charge high prices for their products. So,
while remain
prices cost of production tends to increase, resulting in huge losses.
low,
and corrupt. They
(9)Irresponsible Staff: In public sector, workers are generally indisciplined
are hardly conscious of their responsibilities. The security of job makes them irresponsible.
her promotion is determined not by their efficiency but simply by theirseniority. Trade
unions are also responsible for the indifferent
attitude of public sectorworkers. This results in

low productivity.
 (10)
Under-utilization of Production
utilization of their Indian Economy
material and production capacity. Capacity:
trained
Public
This is because of enterprises are known for
production capacity, and personnel, lack of demand, lack several
of
reasons, such as lack under
utilization, 61 per cent of allinefficiency of management. In proper of
planning in respectraw
operated between 50 to 75 public enterprises operated at 752013-14, in terms of of
50 per cent
of their per cent and the per
remaining 20 per cent
cent or capacitu
higher; 19 per cent
installed
enterprises fail to get high returncapacity. Because of operated at even less
(11) High on their investment.underutilization of their than
capacity, these
capitalCapital-output Ratio:
investment. That is, Output of public enterprises
capital-output
production in these enterprises, is much lower
This and on
ratio
the other
is compared to their
very high. On
one hand,
adversely affects public hand, productivity of there is low
(12) Over enterprises. capital remains low
Staffing: Overstaffing is well known
productivity and high wage bill. a
feature of
in some of these Marginal productivity ofpublic enterprises. Thisresults in low
(13) Over enterprises. the workers is zero or even
Capitalisation: In many public enterprises such as negative
and Hindustan
interest paymentsAeronautics,
without
there is lot of over Heavy Engineering
capitalization. This involves Corporation
low profitability. corresponding returns. Machines also remain huge liabilityof
idle. This
5. Measures and Suggestions for the results in
Enterprises in India/Reforms in Public
Improvement of Public Sector
(1) Sector Sector
Corporations: Administrative
should be put directly under some sectorReforms Committee opined that all
brought under one corporation. Likewise,corporations. All public enterprises
engineering
separate corporation and so on. This all isfertiliser enterprises shouldenterprises
be
should be
(a) Economies of policy expected to be useful in the brought under a
for the growth of large-scale production will be available, (b) following ways:
enterprises. More research can be
(2) Reforms in Board of conducted
public enterprises shouldDirectors: It is advised that
be suitably reformed. various Boards of
representatives of workers and financial These Boards should Management
have
for the
directors of these Boards. experts. Politicians should not be professionals,
(3) Efficient
appointed as
Management and Able
manage public enterprises. These Employees: Efficient managers should be
training facilities should be spread inappointments should be based on merit. appointed to
should have accountability.
the country.
Every employee in the publicManagement
Promotions should be determined
simply on the basis of seniority. Efficient enterprises
by performance and not
personnel should be punished. Such managers employees should be suitably awarded.
should be appointed as are Corrupt
objective of economic growth and social justice. committed to the
(4) Inspection of Public
Enterprises: Public enterprises are inspected by Public
Committee and Estimates Committee. The Accounts
government has also set up
Committee of Public Undertakings for inspection of public enterprises. Public Parliamentary
thoroughly controlled by these committees. Bureau of Public enterprises are
Enterprises has been established
 Sector
in India
Public

fer annual inspection of

public
109
oring quidelines to public enterprises. The Bureau should
enterprises for preparing their
onterprise should publish a comprehensive prepare a model report
annual progress
to know about their report of its reports. Every
performance. functioning, so that people may come
(5) Auutonomy to Public Enterprises:
onterprises in their day-to-day work. Complete autonomy should be granted to
interference. Politicians should not be There should be minimum possible public
appointed to control these
competent and able politicians are available, government
consultants. In no case they should be they should better be enterprises. Hwever,if
appointed honorary
directly involved in the control and as
enterprises. management of the
(6 Proper Auditing:
Accounts of public enterprises should be
Administrative Reforms Committee, three or four Audit
properly audited. According to
the direct control of Comptroller and Boards should be established under
Auditor General.
(7) Full Utilisation of Productive
their
Capacity: Public enterprises should be toned up to fully
utilize productive capacity. New industries should be established
utilisation of the existing productive capacity. Productive only after complete
should be raised only if at least 85 per cent of the capacity of the existing enterprises
existing capacity is being utilised.
(8) Commercial Outlook: Public enterprises must adopt commercial outlook. There
should
be a coordination between national interest and
profitability. Government has realised that
price policy of public enterprises should be based on the market forces, i.e., the prices of
products of public enterprises be fixed on the basis of prevailing market prices. And in case of
government monopolies, prices should be determined with a view to raising the level of
profitability.
(9) Increase in Efficiency: Public enterprises should raise their efficiency level. In this context,
it may be suggested that: (i) There should be a proper research department of these
enterprises, (ii) there should be proper incentives for raising the level of production, reducing
expenses and improving the quality of product, (ii) appointments must be based on ability,
no red tapism in decision
expertise and administrative capabilities, (iv) there should be
making, and of the enterprises must be annually assessed. Corrupt officials
(v) efficiency
must be punished and able ones must be awarded.
should also be suitably
(10) Reforms in Labour Policy: Labour policy of public enterprises based not on
designed. Efficient workers must be suitably awarded, Appointments should be
between the
and expertise. There should be cordial relationship
and pressures but
pulls ability should be
compensation to employees
Workers and the management. To the extent possible, Union in an industry. Union
There should be only one Trade
linked with their productivity. to their
must have sense of belongingness
be the workers themselves. Workers
leaders should
should be set up for the recruitment of
Service Commission
organisation. Industrial Public
efficient and able workers. in public
the problem of overstaffing
Retirement Scheme (VRS): To check 1988 and a new VRS
voluntary retirement scheme in
government
launched voluntary retirement from central
eprises, for voluntary
employees have opted
Scheme in 2001. 6.19 lakh
March 2015
October 1988 to
public sector enterprises from
 Indian Economy
110

It is the constant
endeavour of the government
Sector Enterprises:
(12) Revival of Sick Public and profitability. The
sick PSEs in order to improve their performance, productivity
to revive the Board for Keconstruction of Public
revived are referred to
sick PSEs which are capable of being revival/rehabilitation packages. As on
appropriate
Sector Enterprises (BRPSE), for formulating these government
out of has
with BRPSE,
March, 2015, 63 sick PSEs were registered PSEs are dropped (no revival package was
31st s
revival package in respect of 14 PSEs, 15
approved PSEs (where revival is not possible
sick and closure of 18
sanctioned) as these are no longer are under observation for
the government. The remaining 16 sitk PSEs
have been approved by
detailed examination. uenoe
extravagance in public
sector enterprises must be
Check on Extravagance: Growing
(13) entertainments, meetings and synmposiums must be
checked. Expenditures on foreign trips, sector enterprises.
should be strict parliamentary control overpubliç
severely curtailed. There
recommendations of Arjunsen Gupta
(ka Memorandum of Understanding (MoU): On the
of Memorandum of Understanding
Committee, the government introduced the concept
reduce the government control and
(MoU) in 1987-88. The main objective of MoU is to
number of public enterprises signing
increase accountability of employees of PSUs. The
MoUs went up from 4 in 1987-88 to 215 in 2015-16. More such MoUs should be signed so as
to give freedom to public enterprises in their working.
TheDepartment of Public Enterprises evaluates the working of public enterprises every year. In
2013-14, 187 public enterprises were rated, out of these 76 enterprises were evaluated as excellent, while
38 PSEswere evaluated as very good, 36 good, 29 fair and 8 PSEs were rated poor
5.1 Public Sector Reforms in New Industrial Policy/Public Sector and
Economic Reforms
Followingimportant decisions have been taken in New Industrial Policy, 1991 with regard to public
enterprises:
(1) In the industrial policy of 1956, 17 industries were reserved for public sector. But under
d s no economic reforms drive, government dereserved the industries in a
phased manner and at
present only 2 industries are reserved for public sector. These two industries are -atomic
energy and railways. The other 15 of the 17 industries reserved for public sector have been
declared open for private investment and participation. Now, even some
key components of
railways infrastructure have been opened for the private sector. Consequently, there is
possibility of increase in investment, competition and efficiency in these dereserved sectors.the
(2) Shares of public sector enterprises will be disinvested, i.e., sold to the
private sector
enterprises. Upto March 2016, the equity shares of T 2,09,288 crore have been disinvested.
(3) Sick public sector enterprises will be subject to the same
policy as private
enterprises. Those sick units will be closed down which cannot be revived. Efforts will be sector
made
to remove hardships caused to employees on account
of closure of sick units of
For this, government has set up National Renewal Fund. public sector.
(4) Public sector enterprises will be made more efficient through the
medium of
Memorandum
of Understanding. Under it, managers will enjoy more
autonomy and be made responsible
for the results.
(5) To generate resources, improve Dransparency, efficiency and corporate responsibility,
shares
of PSUs will be listed on stock exchanges. As on 3lst March, 2015, 45 Central Public Sector
 Sector in India
Public

Eoterprises are listed on domestic

Ctnck
S
Exchange, the shares stock 111
ot exchanges. Shares
led that all GAIL & SAIL are listed of MTNL are listed on New
government decide
and earnin net unlisted PSUs with a on
London Stock York
profits in the Exchange. losses
Economic Affairs has decided preceding three yearspositive net worth, no accumulated Now
that in should be
PSUs, minimum listed. Cabinet committee on
10 per cent. all listed

(6) Navratans: In July 1997, the public shareholding should be

Navratans'. Presently, there government
are 7
declared 11 major
Public Sector
Maharatna enterprises are Coal IndiaMaharatna and 17 Navratan Undertakings as
The navratan public Ltd., IOCL, NTPC, public enterprises. The 7
HAL. EIL, PFC, NLCL,enterprises at present are ONGC, BHEL, GAIL and
NACL, NMDCL, NBCCL, CCIL, HPCL, MTNL,OIL, RINL,SAIL
BPCL,
have been granted full
financial and PGCIL, SCIL and REC. These BEL
these enterprises has been managerial industries
reduced to the autonomy. The government interference in
Government of India declared 73 profit minimum. As on 31st
March, 2015,
making the
package of financial andenterprises as Mini Ratans. These industries
have also been given a

(7) Professional Management: The element of operational autonomy.

professionalism is being
management of public sector enterprises. Government entered in the
total directors in each PSU has directed that at least one-third of
should be independent
organisation. It will help in enhancing the efficiency and professionals from outside the
In short, it is the constant endeavour of profitability of PSUs.
the government to
reorganise the
rformance, productivity and profitability. The public of enterprises
in order to improve their sector

enterprises has improved. In the year 1995-96, the public enterprises earnedprofitability
a profit
public sector
This profit increased to of 7,187 crore.
1,03,003 crore in 2014-15 It indicates their better working and
efficiency. increased

List of Main Central Public Enterprises of India

() Oil and Natural Gas Corporation Ltd. (ONGC)
i) Bharat Sanchar Nigam Ltd. (BSNL)
Cii) National Thermal Power Corporation Ltd. (NTPC)
(v) Indian Oil Corporation Ltd. (1OC)
(v) Power Grid Corporation of India Ltd. (PGCIL)
(vi) Steel Authority of India (SAIL)
(vil National Hydroelectric Power Corporation Ltd. (NHPCL)
(Vil) Nuclear Power Corporation of lIndia Ltd. (NPCIL)

(x) ndustan Petroleum Corporation Ltd. (HPCL)

Gail (India) Ltd.

() harat Petroleum Corporation Ltd. (BPCL)
(xi) Gharat Heavy Electricals Ltd. (BHEL)
 112
Indian Econom

Questiens
1 . Essay Type Questions
1. Explain the role of public sector in the economic
2. Review the growth and working of
development of India. What are its problems?
public sector in India.
What has been the role of public enterprises in the industrial development of India
plans? What are the causes of low profitability in public sector? during the
4. Analyse the role of the public sector in
Indian economy.
What have been the major failures of
public enterprises in India? Describe the steps taken by
the government for the
development of these enterprises in the new industrial policy.
koExplain the causes of poor
performance of public enterprises in India. Give suggestions to
improve their performance.
jDiscuss the role and growth of public sector in India since 1950. How has its role
the recent past? changed in
8. Critically analyse the
o
performance of public enterprises in India. Explain the major changes in
policy
direction of the government towards public sector.
II. Short Answer Type Questions ofrbe
1. Define public sector enterprises
2. Explain the
causes of low prófitability of public enterprises in India. /ol
3. Write down four
defects of public enterprises in India.
any
Discuss the major achievements of public sector in India. (0e hena
5. Discuss the need of public sector for industrial
development of India.
6. Should public sector be adjudged on the criterion of profitability alone?
7. Discuss the role of public sector in Indian
economy.
8. Give main objectives of public enterprises in India.
9. Explain the major problems faced by public sector in India.
10. Give suggestions to solve the problems of public enterprises in India.
11. Briefly describe Exit Policy in the context of public enterprises.
[Hint: Discuss Voluntary Retirement Scheme]