Public Enterprises

What be the Objectives of unrestricted Enterprises? SOUMYA SINGH In India, existence enterprises bring in been assigned the task of realising the objectives laid down in the Directive Principles of secern Policy. ordinary vault of heaven as a whole seeks (a) to gain picture of the commanding heights of the economy, (b) to promote critical tuition in damage of social gain or strategical value rather than on consideration of pelf, and (c) to provide commercial unneeded with which to finance further scotch development. The main objectives of semi common enterprises in India are as follows 1. Economic development popular enterprises were set up to accelerate the rate of economic offspring in a planned manner. These enterprises cast off created a sound industrial base for rapid industrialisation of the country. They are expected to provide al-Qaida facilities for promoting correspondenced and diversified economic structure of development. 2. Self-reliance Another bet oken of ordinary enterprises is to promote self-reliance in strategic domains of the national economy. For this purpose, globe enterprises submit been set up in transportation, communication, energy, petro-chemicals, and other primordial and prefatory industries. . phylogenesis of unwilling Areas Several public enterprises were established in backward areas to reduce regional imbalances in development. Balanced development of different separate of the country is necessary for social as well as strategic reasons. 4. Employment generation Unemployment has be vex a serious problem in India. cosmos enterprises seek to offer gainful employment to millions. In do to protect professions, several sick units in the private empyrean have been nationalised. 5. Economic surplus habitual enterprises seek to generate and mobilise surplus for reinvestment.These enterprises earn money and mobilise public savings for industrial development. 6. equalitarian society An important objectiv e of public enterprises is to prevent concentration of economic power and growth of private monopolies. Public sector helps the Government to practice social control on trade and industry for ensuring equitable dissemination of goods and services. Public enterprises protect and promote small scale industries. 7. Consumer well-being Public enterprises seek to protect consumers from exploitation and profiteering by ensuring supply of essential commodities at cheaper prices.They aim at stabilising prices. 8. Public utilities Private sector is guide by profit motive. in that respectfore, it is reluctant to invest money in public utility services like water supply, gas, electricity, public transport. Therefore, the Government has to give birth responsibility for providing such services. 9. Defence Government has to set up public enterprises for production of defence equipment. Supply of such equipment cannot be entrusted for private sector due to the need for utmost secrecy. 10. La bour welfare Public enterprises divine service as seat employers.They ensure welfare and social security of employees. some public enterprises have developed townships, schools, college and hospitals for their workers. Role and Rationale of Public Enterprises The public sector has been playing a vital role in the economic development of the country. In fact the public sector has come to study such an important place in our economy that on its sound performance depends largely the achievement of the countrys economic and social goals. Public sector is considered a powerful engine of economic development and an important prick of self-reliance.The main contributions of public enterprises to the countrys economy may be described as follows 1. Filling of gaps At the time of independence, there existed serious gaps in the industrial structure of the country, particularly in the field of heavy industries. Basic and key industries require huge capital investment, involve considerable r isk and place upright from long gestation periods. Private sector concerns do not come forward to establish such industries. Public sector has helped to fill up these gaps. The basic infrastructure required for rapid industrialisation has been built up, by means of the production of strategic capital goods.The public sector has considerably widened the industrial base of the country and speeded up the pace of industrialisation. 2. Employment Public sector has created millions of jobs to tackle the unemployment problem in the country. Public sector accounts for about two-third of the issue forth employment in the organised industrial sector in India. By taking over many sick units, the public sector has protected the employment of millions. Public sector has also contributed a lot towards the betterment of working and living conditions of workers by serving as a model employer. 3. Balanced regional developmentPrivate industries tend to concentrate in certain regions while other regions remain backward. Public sector undertakings have located their plants in backward and untraded parts of the country. These areas lacked basic industrial and civic facilities like electricity, water supply, township and manpower. Public enterprises have developed these facilities thereby bringing about complete transformation in the social-economic life of the hatful in these regions. Steel plants of Bhilai, Rourkela and Durgapur fertilizer factory at Sindri, machine gibe plants in Rajasthan, precision instruments plants in Kerala and Rajasthan, etc. are a few examples of the development of backward regions by the public sector. 4. Optimum exercising of resources Public enterprises make better utilisation of scarce resources of the country. They are big in size and able to enjoy the benefits of large scale operations. They help to exceed wasteful fulfilment and ensure full use of installed capacity. Optimum utilisation of resources results in better and cheaper productio n. 5. Mobilisation of surplus The profits earned by public enterprises are reinvested for expansion and diversification. Moreover, public sector concerns like banks and monetary nstitutions mobilise scattered public savings thereby helping the subprogram of capital formation in the country. Public enterprises earn considerable conflicting exchange through exports. 6. Self reliance Public enterprises have trim back considerably the need for imports by producing sunrise(prenominal) and better products within the country. These enterprises are also earning considerable amount of foreign exchange through exports. 7. collectivized pattern of society Public sector is an instrument for realising social objectives. Public enterprises help to check concentration of wealth and private monopolies.These enterprises can assist as powerful means of economic and social change. 8. Public welfare Public enterprises help in the establishment of a welfare relegate in the country. These enterpr ises supply essential commodities at cheaper rates. A proper(a) balance between demand and supply is created to protect consumers against exploitation by profit hungry businessmen. Public enterprises also protect and promote the interests of workers. Criticism of Public Enterprises Arguments against Public Enterprises Public enterprises are opposed on account of weaknesses in their organisation and working.These enterprises generally suffer from the following problems 1. Delay in completion Often a very long time is taken in the establishment and completion of public enterprises. Delay in completion leads to affix in the cost of establishment and benefits extracted from them are delayed. 2. Faulty evaluation Public enterprises are in some cases set upon political considerations. There is no proper evaluation of demand and supply and expected costs and benefits. There are no clear cut objectives and guidelines. In the absence of proper offer provision there is under- utilisation o f capacity and wastage of national resources. . hard overhead costs Public enterprises often spend huge amounts on providing housing and other amenities to employees. Though such investment is efficacious for employees but it takes away a large part of capital and the project suffers from financial difficulties. 4. Poor returns Majority of the public enterprises in India are subject loss. In some of them the profits earned do not hold a reasonable return on huge investment. Lack of utile financial controls, wasteful expenditure and dogmatic pricing policy result in losses 5. Inefficient managementDue to excessive centralisation of authority and lack of motivation public enterprises are managed inefficiently. High take aim posts are often occupied by persons lacking necessary expertness but enjoying political support. 6. Political fray There is frequent interference from politicians and civil servants in the working of public enterprises. Such interference leaves teensy scope for initiative and freedom of action. Public enterprises enjoy little shore leave and flexibility of operations. 7. Labour problems In the absence of proper manpower planning public enterprises suffer from over-staffing.Jobs are created to fulfil employment goals of the Government. Guarantee of job in these enterprises encourages trade unions to be militant in pursuing their aims. appendage of Public Enterprises in India At the time of independence, public sector in India was confined mainly to railways, communications, defence production and public utility services. Since and then the growth of public enterprises has been very rapid. Now public sector consists of public utilities (e. g. , railways, post and telegraph, etc), manufacturing concerns (e. g. , BHEL, SAIL, etc. ), trading organisations (e. g. STC, MMTC, etc. ), service organisations (e. g. , NIDC, RITES, etc. ). SAIL, a Maharatna Company of Govt. of India, is the worlds leading and Indias largest vane producer with an annual turnover of some Rs. 50,348 crore (FY11-12). It operates and owns 5 integrated steel plants at Rourkela, Bhilai, Durgapur, Bokaro and Burnpur and 3 special steel plants at Salem, Durgapur and Bhadravati. As part of its global ambition the Company is implementing a massive expansion plan involving project work of building/adding new facilites with emphasis on state of the art green technology.List of Maharatna, Navratna and Miniratna CPSEs As per accessible information (as on February, 2013) Maharatna CPSEs Bharat Heavy Electricals special Coal India hold GAIL (India) special(a) Indian Oil breadbasket control NTPC modified Oil & raw(a) Gas connection restrict Steel Authority of India especial(a) Navratna CPSEs Bharat Electronics control Bharat Petroleum kitty particular Hindustan Aeronautics express Hindustan Petroleum Corporation throttle Mahanagar Telephone Nigam Limited National Aluminium Company Limited NMDC Limited Neyveli Lignite Corporation Limited O il India LimitedPower Finance Corporation Limited Power Grid Corporation of India Limited Rashtriya Ispat Nigam Limited country-style Electrification Corporation Limited Shipping Corporation of India Limited Miniratna Category I CPSEs Airports Authority of India Antrix Corporation Limited Balmer Lawrie & Co. Limited Bharat Dynamics Limited BEML Limited Bharat Sanchar Nigam Limited Bridge & Roof Company (India) Limited Central depot Corporation Central Coalfields Limited Chennai Petroleum Corporation Limited cochin china Shipyard Limited Container Corporation of India Limited Dredging Corporation of India LimitedEngineers India Limited Ennore Port Limited Garden Reach Shipbuilders & Engineers Limited Goa Shipyard Limited Hindustan Copper Limited HLL Lifecare Limited Hindustan Newsprint Limited Hindustan Paper Corporation Limited Housing & urban Development Corporation Limited India Tourism Development Corporation Limited Indian Railway Catering & Tourism Corporation Limited IRCON internationalistic Limited KIOCL Limited Mazagaon Dock Limited Mahanadi Coalfields Limited Manganese Ore (India) Limited Mangalore Refinery & Petrochemical Limited Mishra Dhatu Nigam Limited MMTC Limited MSTC LimitedNational Fertilizers Limited National Seeds Corporation Limited NHPC Limited Northern Coalfields Limited Numaligarh Refinery Limited ONGC Videsh Limited Pawan Hans Helicopters Limited Projects & Development India Limited Railtel Corporation of India Limited Rashtriya Chemicals & Fertilizers Limited RITES Limited SJVN Limited pledge Printing and Minting Corporation of India Limited South Eastern Coalfields Limited country Trading Corporation of India Limited Telecommunications Consultants India Limited THDC India Limited Western Coalfields Limited WAPCOS Limited Miniratna Category-II CPSEsBharat Pumps & Compressors Limited Broadcast Engineering Consultants (I) Limited Central tap Planning & Design Institute Limited Ed. CIL (India) Limited Engineering Projects (India) Limited FCI Aravali Gypsum & Minerals India Limited Ferro Scrap Nigam Limited HMT (International) Limited HSCC (India) Limited India Trade onward motion Organisation Indian Medicines & Pharmaceuticals Corporation Limited M E C O N Limited National Film Development Corporation Limited National Small Industries Corporation Limited P E C Limited Rajasthan Electronics & Instruments Limited