37 psus – control, management & performance
TRANSCRIPT
-
7/29/2019 37 PSUs control, management & performance
1/19
Public Sector Undertakings
CONTROL, MANAGEMENT &
PERFORMANCE
Parth R Shah 11MBAO91
Viral Doshi 11MBAO14
-
7/29/2019 37 PSUs control, management & performance
2/19
A pubic sector undertaking may be defined as anycommercial or industrial undertaking owned and managed
by the government with a view to maximise social welfare
and uphold the public interest
Public enterprises consist of nationalised private sector
enterprises, such as, banks, Life Insurance Corporation of
India and the new enterprises set up by the government suchas Hindustan Machine Tools (HMT), Gas Authority of India
(GAIL), State Trading Corporation (STC) etc.
WHAT IS PSU?
-
7/29/2019 37 PSUs control, management & performance
3/19
Objective of public sector
1. To attain commanding heights of the economy.
2. To provide commercial surplus to finance
economic development.
3. To provide rapid economic development by
filling critical gaps in the industrial structure.
4. To provide basic infrastructure facilities.
5. To ensure balance regional development.
-
7/29/2019 37 PSUs control, management & performance
4/19
6. To reduce sharp disparity of income and preventconcentration of economic power in few hands.
7. To effect social control and regulation of long-term
finances through government financial institutions.
8. To achieve self-reliance in critical areas.
9. To create employment opportunities on an increasingscale.
10. To help improve foreign exchange earnings.
Continue
-
7/29/2019 37 PSUs control, management & performance
5/19
Forms of Public Units
-
7/29/2019 37 PSUs control, management & performance
6/19
It is established by the government and its overall
control rests with the minister.
It is a part of the government and is managed like any
other government department.
It is financed through government funds.
It is subject to budgetary, accounting and audit control.
Its policy is laid down by the government and it is
accountable to the legislature.
DEPARTMENTAL UNDERTAKINGS
-
7/29/2019 37 PSUs control, management & performance
7/19
It is incorporated under a special Act of Parliament or State
Legislative Assembly.
It is an autonomous body and is free from government control in
respect of its internal management However, it is accountable to
parliament and state legislature.
It has a separate legal existence. Its capital is wholly provided bythe government.
STATUTORY CORPORATIONS
-
7/29/2019 37 PSUs control, management & performance
8/19
It is managed by Board of Directors, which is composed of individuals
who are trained and experienced in business management. The members
of the board of Directors are nominated by the government.
It is supposed to be self sufficient in financial matters. However, in case
of necessity it may take loan and/or seek assistance from thegovernment.
Continue
-
7/29/2019 37 PSUs control, management & performance
9/19
(a) It is registered under the Companies Act, 1956.
(b) It has a separate legal entity. It can sue and be sued, and can acquire
property in its own name.
(c) The annual reports of the government companies are required to be
presented in parliament.
(d) The capital is wholly or partially provided by the government. In case
of partially owned company the capital is provided both by the
government and private investors. But in such a case the central or state
government must own at least 51% shares of the company.
GOVERNMENT COMPANIES
-
7/29/2019 37 PSUs control, management & performance
10/19
It is managed by the Board of Directors. All the Directors or the
majority of Directors are appointed by the government, depending upon
the extent of private participation.
Its accounting and audit practices are more like those of privateenterprises and its auditors are Chartered Accountants appointed by the
government.
Its employees are not civil servants. It regulates its personnel policiesaccording to its articles of associations.
Continue
-
7/29/2019 37 PSUs control, management & performance
11/19
Performance of PSE
No of PSE which was only 5 in 1950 was raised to 242 in 2008
Investment in CPSE raised from 29 crores (1951) to 4,55,409
crores in 2008.
In number of profit making PSE was increased to 160 from 119
No. loss making PSE was came down to 53 from 105
PSE earned foreign exchange of Rs. 74,283 crores in 2008 majorearnings from oil companies
The total number of employees in Central PSUs was 1.53 mn in
FY09 and came down to 1.49 mn in FY10
-
7/29/2019 37 PSUs control, management & performance
12/19
Continue
The 18 Navratnas had a total income of Rs 8,478 bn in FY09, as
compared to Rs 7,052.56 bn in FY08.
In FY09, the navratnas total income was equivalent to 15.20% of
Indias GDP (at current market prices) and it rose from 14.15% in
FY07 to 14.25% in FY08.
-
7/29/2019 37 PSUs control, management & performance
13/19
-
7/29/2019 37 PSUs control, management & performance
14/19
Having Navratna status.
Listed on Indian stock exchange with minimum prescribedpublic shareholding under SEBI regulations.
An average annual turnover of more than Rs. 20,000. crore
during the last 3 years.
An average annual net worth of more than Rs. 10,000 crore
during the last 3 years.
An average annual net profit after tax of more than Rs. 2500crore during the last 3 years.
Should have significant global presence/international
operations.
Maharatna Company
-
7/29/2019 37 PSUs control, management & performance
15/19
Performance Parameters Maximum Marks
Net Profit to Net Worth 25
Manpower cost to cost of production or
services
15
Gross margin as capital employed 15
Gross profit as Turnover 15Earnings per Share 10
Inter-Sectoral comparison based on Net profit
to net worth
20
Total 100
Having Schedule A and Miniratna Category-1 status.
Having atleast three Excellent or VeryGood Memorandum of Understanding (MoU)ratings during the last five years.
Having a composite score of 60 or above out of 100 marks based on its performance
during the last three years on the following six identified efficiency parameters:
Navratna company
-
7/29/2019 37 PSUs control, management & performance
16/19
Miniratna CompanyCategory I
This category applies to PSEs that have made profits continuously for
the last three years or earned a net profit of Rs. 30 crore or more in
one of the three years.
These miniratnas granted certain autonomy like incurring capital
expenditure without government approval up to Rs. 500 crore or equalto their net worth, whichever is lower.
Category II
This category include those PSEs which have made profits for the last
three years continuously and should have a positive net worth.
Category II miniratnas have autonomy to incurring the capital
expenditure without government approval up to Rs. 300 crore or up to
50% of their net worth whichever is lower.
-
7/29/2019 37 PSUs control, management & performance
17/19
MAHARATNA CPSEs
Coal India Limited
Indian Oil Corporation Limited
NTPC Limited
Oil & Natural Gas Corporation Limited
Steel Authority of India Limited
NAVRATNA CPSEs
Bharat Electronics Limited
Bharat Heavy Electrical LimitedBharat Petroleum Corporation Limited
GAIL (India) Limited
Mahanagar Telephone Nigam Limited
Power Grid Corporation of India Limited
-
7/29/2019 37 PSUs control, management & performance
18/19
MINIRATNA Category I CPSEs
Airports Authority of IndiaBharat Dynamics Limited
Bharat Sanchar Nigam Limited
Indian Railway Catering & Tourism Corporation Limited
Central Warehousing Corporation
MINIRATNA Category-II CPSEs
Bharat Pumps & Compressors Limited
Broadcast Engineering Consultants (I) LimitedCentral Mine Planning & Design Institute Limited
Ed.CIL (India) Limited
Engineering Projects (India) Limited
-
7/29/2019 37 PSUs control, management & performance
19/19