Public Enterprises Essay

What atomic number 18 the Objectives of open Enterprises? SOUMYA SINGH In India, reality enterprises count been assigned the task of realising the objectives laid glow back in the Directive Principles of State Policy. humankind welkin as a in all seeks (a) to gain overlook of the commanding heights of the economy, (b) to foster critical suppuration in terms of accessible gain or strategic value rather than on consideration of pelf, and (c) to provide commercial un guideed with which to finance further frugal development. The principal(prenominal) objectives of universe enterprises in India atomic number 18 as follows 1. Economic development popular enterprises were ready up to accelerate the rate of stinting growth in a mean manner. These enterprises have created a sound industrial base for speedy industrialisation of the surface area. They are expected to provide infrastructure facilities for promoting equilibrate and diversified economic structure of develop ment. 2. effrontery A nonher aim of unrestricted enterprises is to advance self-reliance in strategic welkins of the internal economy. For this purpose, frequent enterprises have been set up in transportation, communication, energy, petro-chemicals, and other key and introductory industries. . victimization of backward Areas Several public enterprises were established in backward areas to overturn regional imbalances in development. Balanced development of different parts of the domain is prerequisite for social as well as strategic reasons. 4. Employment generation Unemployment has make a serious problem in India. prevalent enterprises seek to offer salaried employment to millions. In order to entertain jobs, several sick units in the clandestine celestial sphere have been nationalised. 5. Economic tautological existence enterprises seek to generate and marshal surplus for reinvestment.These enterprises earn money and drum up public savings for industrial devel opment. 6. equalitarian nightclub An important objective of public enterprises is to prevent stringency of economic index finger and growth of private monopolies. universal field helps the regime to enforce social control on trade and industry for ensuring equitable distribution of goods and returns. habitual enterprises nurture and promote small racing shell industries. 7. Consumer welfare commonplace enterprises seek to protect consumers from exploitation and net profiteering by ensuring impart of essential commodities at cheaper prices.They aim at stabilising prices. 8. earth utilities cliquish sector is guided by profit motive. thitherfore, it is reluctant to invest money in public utility services alike water ply, gas, electricity, public transport. therefore, the Government has to take over responsibility for providing much(prenominal) services. 9. Defence Government has to set up public enterprises for ware of defensive structure equipment. Supply of s uch equipment cannot be entrusted for private sector due to the need for utmost secrecy. 10. Labour welfare overt enterprises coif as stumper employers.They break welfare and social security of employees. nearly public enterprises have developed townships, schools, college and hospitals for their workers. grapheme and Rationale of Public Enterprises The public sector has been playing a vital theatrical role in the economic development of the country. In fact the public sector has get laid to occupy such an important infinite in our economy that on its legal performance depends life-sizely the achievement of the countrys economic and social goals. Public sector is considered a powerful locomotive engine of economic development and an important legal instrument of self-reliance.The main contributions of public enterprises to the countrys economy may be set forth as follows 1. Filling of gaps At the conviction of independence, there existed serious gaps in the industri al structure of the country, particularly in the line of business of heavy industries. Basic and key industries invite abundant capital investment, involve immense risk and suffer from long gestation periods. cloak-and-dagger 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, through the mathematical product 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 good employment in the organised industrial sector in India. By winning over many sick units, the public sector has protected the employment of millions. Public sector has likewise contributed a quite a subaltern towards th e improvement of working and living conditions of workers by serving as a model employer. 3. Balanced regional developmentPrivate industries tend to concentrate in true regions while other regions remain backward. Public sector undertakings have located their plants in backward and untraded parts of the country. These areas needinessed basic industrial and civic facilities like electricity, water supply, township and manpower. Public enterprises have developed these facilities thereby bringing about complete shimmy in the social-economic life of the people in these regions. stigma plants of Bhilai, Rourkela and Durgapur fertilizer factory at Sindri, machine tool plants in Rajasthan, clearcutness instruments plants in Kerala and Rajasthan, etc. are a few extype Ales of the development of backward regions by the public sector. 4. best utilisation of resources Public enterprises make better utilisation of meagre resources of the country. They are big in coat and able to enjoy th e benefits of large scale operations. They help to eliminate wasteful closure and ensure full use of installed potentiality. Optimum utilisation of resources results in better and cheaper production. 5. militarization of surplus The profits earned by public enterprises are reinvested for expansion and diversification. Moreover, public sector concerns like banks and financial nstitutions recall scattered public savings thereby helping the process of capital establishment in the country. Public enterprises earn colossal foreign deputize through exports. 6. self-importance reliance Public enterprises have rock-bottom considerably the need for imports by producing naked as a jaybird and better products within the country. These enterprises are also earning considerable amount of foreign exchange through exports. 7. Socialistic 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 serve as powerful means of economic and social change. 8. Public welfare Public enterprises help in the establishment of a welfare solid ground in the country. These enterprises supply essential commodities at cheaper rates. A appropriate balance between posit 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 slackly suffer from the following problems 1. live in completion Often a in truth long time is taken in the establishment and completion of public enterprises. Delay in completion leads to increase in the cost of establishment and benefits extracted from them are delayed. 2. haywire evaluation Public enterprises are in some cases set upon political cons iderations. There is no proper evaluation of demand and supply and expected be and benefits. There are no clear cut objectives and guidelines. In the absence of proper honk preparedness there is under- utilisation of capacity and wastage of national resources. . glowering overhead costs Public enterprises often spend huge amounts on providing housing and other conveniences to employees. Though such investment is helpful for employees but it takes away a large part of capital and the project suffers from financial difficulties. 4. Poor go ons Majority of the public enterprises in India are incurring loss. In some of them the profits earned do not yield a reasonable return on huge investment. Lack of rough-and-ready financial controls, wasteful expenditure and arbitrary pricing policy result in losses 5. Inefficient management payable to excessive centralisation of authority and lack of motivation public enterprises are managed inefficiently. spirited level blots are often set-aside(p) by persons lacking necessary expertise but enjoying political support. 6. Political enlistment There is frequent interference from politicians and courteous servants in the working of public enterprises. such interference leaves little scope for initiatory and freedom of action. Public enterprises enjoy little autonomy and flexibility of operations. 7. Labour problems In the absence of proper manpower planning public enterprises suffer from over-staffing.Jobs are created to take on employment goals of the Government. Guarantee of job in these enterprises encourages trade unions to be militant in pursuing their aims. Growth 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 thus the growth of public enterprises has been very rapid. promptly public sector consists of public utilities (e. g. , railways, post and telegraph, etc), ma nufacturing concerns (e. g. , BHEL, SAIL, etc. ), trading organisations (e. g. STC, MMTC, etc. ), service organisations (e. g. , NIDC, RITES, etc. ). SAIL, a Maharatna association of Govt. of India, is the military personnels leading and Indias largest nerve producer with an annual turnover of near 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 aspiration the Company is implementing a massive expansion plan involving project work of create/adding new facilites with emphasis on state of the art green technology.List of Maharatna, Navratna and Miniratna CPSEs As per available information (as on February, 2013) Maharatna CPSEs Bharat Heavy Electricals limit Coal India expressage GAIL (India) especial(a) Indian Oil kitty particular(a) NTPC exceptional Oil & deoxyadenosine monophosphate essential Gas kitty confine Steel Authority of India control Navratna CPSEs Bharat Electronics hold Bharat oil tum special Hindustan Aeronautics especial(a) Hindustan rock oil conjunction restrain Mahanagar band Nigam limit National Aluminium Company express mail NMDC exceptional Neyveli Lignite stool moderate Oil India special(a) violence Finance Corporation control exponent Grid Corporation of India modified Rashtriya Ispat Nigam Limited Rural Electrification Corporation Limited transportation 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 & detonator Company (India) Limited commutation depot Corporation Central Coalfields Limited Chennai Petroleum Corporation Limited Cochin Shipyard Limited Container Corporation of India Limited Dredging Corporation of India LimitedEngineers India Limited Ennore Port Limited garden R each Shipbuilders & Engineers Limited Goa Shipyard Limited Hindustan Copper Limited HLL Lifecare Limited Hindustan paper Limited Hindustan Paper Corporation Limited Housing & Urban study Corporation Limited India Tourism Development Corporation Limited Indian railway line Catering & Tourism Corporation Limited IRCON International Limited KIOCL Limited Mazagaon Dock Limited Mahanadi Coalfields Limited atomic number 25 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 Security feeling and Minting Corporation of India Limited South eastern Coalfields Limited State Trading Corpora tion of India Limited Telecommunications Consultants India Limited THDC India Limited westbound Coalfields Limited WAPCOS Limited Miniratna Category-II CPSEsBharat Pumps & Compressors Limited Broadcast applied science Consultants (I) Limited Central Mine Planning & human body Institute Limited Ed. CIL (India) Limited Engineering Projects (India) Limited FCI Aravali Gypsum & Minerals India Limited Ferro discard Nigam Limited HMT (International) Limited HSCC (India) Limited India softwood Promotion 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