Footnote:
In: Keshava S.R. (2014), “The Changing face of CPSES in Economic Development of India”, in Radix International Journal of Economics & Business Management, Volume 3, Issue 6, June, ISSN: 2277-1018. (Online Edition)
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 20, 2014 erstellt
Description:
Public sector enterprises are playing pivotal role in economic development of the world economies. India opted for mixed economy, but in the first phase of PSU growth (1951-66) and in second phase (1967-1991), public sector played a crucial role in building industrial base in India. In the third phase (post 1991) public investment in CPSEs are reduced, instead disinvestment and privatization gained momentum. The important objectives of the CPSEs were not just to promote economic development through industrialization, but also redistribution of income and wealth; to promote balanced regional development; for creation and expansion of infrastructure, to generate financial resources for development, to promote redistribution of income and wealth, to create employment opportunities, to encourage the development of small scale and ancillary industries, to promote exports on one side and imports substitution on the other.In 1951 there were only five CPSEs which increased to 240 in 1994-95 and subsequently reduced to 229 CPSEs in 2012-13. The profit making public sector enterprises were 139 with profit of Rs 61606 in 2003-04 which increased to 149 CPSEs with profit of 143559 crore in 2012-13. Numbers of loss making public sector enterprises were 89 with loss of Rs 8522 crore in 2003-04 which declined to 79 public sector enterprises with an increased loss of Rs 28260 crores in 2012-13.The important constraints faced by CPSEs are absence of rational pricing, old and outdated technology, marketing constraint, surplus man power operational and managerial inadequacies and too much of government and political interference. Government of India adopted series of reforms including exit policy, disinvestment, autonomy status through Maharatna and Miniratna to overcome the deficiencies. CPSEs are pride of the Indian economy and if the deserved the adequate autonomy is given, some of the CPSEs will emerge as world class enterprises