ailing public sector undertakings

AILING PUBLIC

SECTOR UNDERTAKINGS

Under Guidance: Presented by:

Mr. Vinod kumar Nitin(1411061)

Overview of the presentation!!!

O PSU means

O Categories

O Name of companies

under it

O Investment and

progress

O Role

O challenges

O Sick unit

O Policy

O Disinvestment

O Conclusion

The government-owned corporations are termed

as Public Sector Undertakings (PSUs) in India

,which include majority of 51% or more paid up

share capital.

CATEG

ORIE

SMAHARATNA

NAVRATNA

MINIRATNA

*

*

*

Investment in Public sector

undertakings

PROGRESS MADE BY PSUs

Major Features of PSUs

Maximizing the rate of Economic growth

Development of agriculture

Balanced regional development

Increasing employment opportunities

Preventing private monopoly

ROLE OF PSUs

Challenges faced by PSUs

• Corporate Governance

• Development and management of manpower

• Lack of financial autonomy

• Difficulty in attracting private investments

• Political interference

• Bureaucracy, red-tapism and corruption

Some companies are not overcome

from these challenges faced by them,

which them as sick unit

SICK UNITSick unit is defined as a unit or a company which have incurred accumulated losses equal to or exceeding 50 per cent of its average net worth in the immediately preceding four financial years and has failed to repay debts to its creditor(s).

Sick PSUs

• Hindustan Vegetable Oils Corporation Ltd.

• Hotel Corporation of India Ltd.

• Airline Allied Services Ltd.

• Fertilizer Corporation of India Ltd.

• Hindustan Fertilizer Corporation Ltd.

• Indian Drugs & Pharmaceuticals Ltd.

• HMT Chinar Watches Ltd.• J&K Mineral Development Corporation Ltd.• Bharat Coking Coal Ltd.• Ranchi Ashok Bihar Hotel Corpn. Ltd.• Tungabhadra Steel Products Ltd.• HMT Machine Tools Ltd.• ITI Ltd.• HMT Watches Ltd.

Revival scheme for sick units

1. Diversification

2. Change of management

3. Finance

4. Technical Aspects

5. Labour

Disinvestment can be defined as the action of an organization (or government) selling or liquidating an asset or subsidiary. It is also referred to as ‘divestment”.Example:-1. Maruti Udyog2. SAIL3. Indian Airlines4. Indian Oil5. BALCO

Objectives of Disinvestment

Reduce financial burden on government

Improve public finance

To maintain competition and market discipline

To encourage wider share of ownership

Current News Related to PSUs

• Experts' Opinions

• Anil garg (Mumbai)• Any PSU if not of strategic importance and is making loss should be closed and

VRS given .All assets and licences should be sold by auction. It is no use reviving since PSU employees would not work but just enjoy and make the unit sick again.

• Sunash aggarwal (delhi)• It is better to sell all sick units rather wasting tax payers money as already crore

of rupees have been spent without any sign of revival

• Natarajan D (Chennai) • better sell out, will be better in the long run

• Debadutta das (Delhi) • good step by government. Other PSU operations should be streamlined also like

management,operating efficiency.

• SNRK r (Mumbai) • Well calculated move, they seem to have measured risk and benifits

Conclusion

• Government employees are not terminated if not working properly.

• Skills are not updated in there sick units.

• Not competitive strategies with private firms.

Any Queries