Public Sector Undertakings in India :: Is It a Government’s “ MOLL "




Public Sector Undertakings in India :: Is It a Government’s  “ MOLL "

It was then in 1930 when ONE fine day Mr Gandhi the FATHER of th NATION was talking to Mr Nehru all about improving the economical condition of India. The talks surfaced around  WHAT COULD BE THE MOST VIABLE SOURCE OF EARNING SO THAT THE PEOPLE EARN A DECENT INCOME TO LIVE COMFORTABLE. The Nehru concept was- INDIA SHOULD GO IN FOR THE HEAVY INDUSTRIES AND THAT WOULD HELP INDIA TO GROW FAST The Gandhian principle did not agree to this. He was of the view that  COTTAGE INDUSTRIES AND DIARY FARMING WOULD BE THE SOURCE AND EVERY INDIAN OUGHT TO BE PROVIDED WITH TWO GOATS ATLEAST

Mr Gandhi had his own feelings about that. He saw and he had seen that the country was a AGRICULTURAL BASED ECONOMIST in terms of the economy and as a country. The Indian were NOT technically qualifies to maintain the industries at all. On the contorary the agriculture sector was something that the Indian in large were associated with. Hence he chose this line and the field  as his thpughts to make and move ahead for the Indians in the future.

Mr Nehru had a different legion and a different upbringing. He was for most of the time separated from the essence of India from his family. He was later shifted to London for his studies. From the childhood he was more accredited to be a foreigner in his thought because that is how his upbringing was. He was more of a Westerner rather than an Indian. He had his ideas which always was aligned to the foreigners. That is it and that is how he was different from the other Indian leaders then.
What is Public Sector Undertaking - ::

Public sector undertakings (PSUs) are considered to be vital and crucial pillars for strengthening country's economy. The prime purpose of starting public sector enterprises was to fabricate infrastructure for economic growth and economic development.



Concept and meaning of the Public Sector

Public sector undertakings (PSUs) are the companies established, maintained and controlled by the Central Government of India having 100% stake in it. The entire process of these sectors are

the Government which  selects the utmost top position through a process and then gives it to them with the permission of the government to select the remaining personnel at the various posts and positions to select them to serve the companies and take it forward to generate the revenue so as the make the economy viable.
Importance of the Public Sector in India

India after the independence was in a state of CRUSH. It did not hve any money in it’s coffer and the educational sector remained a BIG blank. It was very hard for the country to maintain a huge population of about 40 crores then.
The British had left our country forcing us to be at their mercy for everything. It was uncertain in terms of the period about how long would they take their time to come back here again.  It was not possible to wait for them. Poverty, hunger, malnutrition, and diseases of many a kind was always attacking the people who needed the Government succor then.

On the other hand the country’s treasury wa as good as nothing It ws HOLLOW for everything.It was not possible for the Government of the day to feed the country with nothing at hand. The equation was simple. Approach the World Bank and the International Monetary Fund to get the money and start the projects here at India

The Britishers had shown us the way. They had mined and unmined some projects here at India in the field of mining.Some mines like the Kolar Gold Mine, the Diamond Mines at Panna at M.P and a few mines from where the Mica was extracted was all that the Government could get it from the Britishers as a hint to follow and move ahead. Hence it was decided by Mr Nehru whose way of thinking was always European as to move ahead with the PSU .

 In 1947 when India became independent, the country was confronting with a variety of socio-economic concerns which had to be resolved. India was mainly agriculture dependent economy with poor infrastructure facilities, no knowledge about investment, pathetic industrial base and low level of savings.

There was wide difference in incomes of different people. The private sector neither had the necessary resources, trained managerial staff nor the ability to undertake risks involved in long term projects which forced the state government to intervene in all the sectors of economy. The

type of problems faced by the country in all domains including economical, social obliged the Government of India to focus on public sector enterprises (PSEs) to empower self -dependent economic development. The holistic outline of public sector undertakings in India is heterogeneous mixture of service industries, manufacturing industries and infrastructural industries.




OBJECTIVES OF PUBLIC SECTOR - ::

It was NOT very clearly defined by the Government of India then as to what could be the main and the basic objectives of the Public Sector. It was NOT there in the mind of anybody as to whether these  sectors ought to be run for the sake of pure profit or to be run as a SOCIAL mean to provide the employment so that every individual who works in these sector gets some salary or the wages to maintain himself and his family
Not very clear in the idea and not have really defined the idea behind to start these sectors, the Government of India under Mr Nehru went a long way to establish these sector’s only with a bent of the mind to provide employment.

The PROFIT:LOSS Equation – Gone with the wind

The basic fact of maintaining a relation between the input and the output to plough some profit and to redeploy the profits into the schemes of the business to grow it and make it large was done away with. These sectors were laid at a pace which was fast and with the aim to provide the jobs only for the people and it is there and then from where the equation and the balance went hayward and off the air That misbalance still exists and it has widened the gap between the profit and the loss in such a manner that from 1947 to 2019 in the last 72 years it has become very hard for the Government to  control the people those who are working in it and to still go on with bearing the loss This is the reason why Public Sector most of them have gone off with the wind.

Ist of it’s kind : Those sector swiils at large

The first of it’s kind in term of the PSU was thr National Coal Development Corporation.A study at India then by the technical professional of the World bank suggested that India has a COAL RESERVE which
would last for about 60 years. That made the Government of india to start with the Coal mines. The NCDC came into prominence. It was the first of many sector under the PSU which started at India

Twenty three places were chosen by that technical team of the world Bank and the place which got prominence were the places under the state of Bihar, west Bengal and Madhya Pradesh. Bishrampur as a place unknown then got the topmost billing to start the mines



To start with two DRAGLINES “ SHIV ‘’ and “ Shankar ’’  were purchased by the GOI from America and established at Bishrampur . That was in 1963 .None other than Mrs Indira Gandhi along with her father and the eldest son Rajiv Gandhi had come all the way from Delhi to Bishrampur to inaugurate the machine and thus started an Industrial revolution of HEAVY MINING & INDUSTRY at India

It may be added here that no less than Pandit Jawaharlal Nehru along with her daughter Madam Indira Gandhi had come to Bishrampur along with her two son on that day when these two draglines were inaugurated at Bishrampur and that was ther first occasion that I had the opportunity to see Mrs Indira Gandhi for the first time in my life.I was just a kid of four years of age,

This was the start. Once done with that in a HUFF and a JIFF the Government went in a large and a bigger way to establish as many as PSU in the various sectors and various domain to only provide the jobs and help the people to establish and strengthen themselves so that their daily life and the way they lead it improves.  Once done with that on the parallel lines the banks which were there here at India and which were started under the British regime too were taken over by the Government. The IMPERIAL BANK OF INDIA was rechristened as the STATE BANK OF INDIA with 93% of the holding with the Government of India .The second one to be attached was the Punjab National Bank and thereafter it was the Bank Of Baroda which infact as of now is the RICHEST Bank amongst all the bank at India.

To control these Banks the RESERVE BANK OF INDIA  which was founded on April Ist 1935 was made as the PRINCIPAL CONTROLLER of these Banks to function and control the Banks to stabilize the INFLATION, THE RESERVOIRS of the GOLD and to maintain the economy at a rate which could be termed as stable.  Thus started the PSU at India. This is how it has the history to get a foothold here at India and to move ahead

Ist discussion of Indian economy and importance of Social justice-::

It was on Februray 1st 1950 after the CONSTITUTION OF INDIA was laid that a discussion was held about the SOCIAL JUSTICE that the constitution spoke about and it was decided that since India is a country where the economy was a MIX of private and the government that was under the British the importance of it cannot be ruled out and it was then decided that the PRIVATE and the GOVERNMENT both as an economy would work hand-in-hand to make the economy more stable and far better. It was then decided that along with the Government the private players also would be given an important role to play to make the economical condition of the country strong.That is how the private players also got an important role to play .A lot of private sector on the parallel line of the Government sector started playing the game.

It was in 1969 the date July 19th 1969 that the Prime Minister Mrs Indira Gandhi then decided to nationalize the Banks and the Coal Mines sector was nationalized on 1972 .That made the PSU’s to get more of an importance to be a SOCIAL JUSTICE PLAYER  . The only aim which was deployed to go in for more and more of the PSU’s was only to provide the jobs and that was done with an eye on the VOTE BANK . The Banks and it’s total jumped to about 27 and there were about 1000 PSU’s from the HEAVIEST of the HEAVY one to about a MINICULISTIC one’s with so many a subsidiary and so many an ancilliaries that were attached to these PSU’S . With that kind of PSU’s the country should have been enjoying the RAM-RAJYA  cried Mr Ghanshyam Birla once, but the scenario was totally different

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Central public sector units are widely diversified in products and services from steel manufacturing, instruments and machine tools, road transport, power generation, mineral mining, coal mining, manufacture of heavy machines, telecommunication equipment, equipments for thermal power station.

Over the last five decades, huge investments have been done in public sector enterprises to expand their production, employ new emerging technologies. As on 31st March, 2005 there were 237 central public sector undertakings out of which 10 fall under the category of enterprise under construction, 144 are from field of manufacturing/producing goods and 83 under the head of enterprises providing services. 

Growth of the PSU under the different FIVE YEAR plan by the Government - ::

 To start with, Rs.29 crore was the total investment for 5 enterprises. After gradually increasing the budget, at the commencement of Fifth Five Year Plan, the total investment reached whooping Rs.6237 crores  and the number of units became 122. By the end of the fifth Five year plan, total investment touched Rs.15534 crores and the number of enterprises reached 169.

From the data, it is quite clear that there has been increasing trend of investment from the commencement till the end of fifth five year plan, a rise of 149.06 % is observed. Similarly a hike of 57.70% in investment was examined from the start till the end of eighth five year plan. The investment made in public sector in 2005 was Rs.3, 57,849 ,an increase of 2.24 % from 2004.It can thus be concluded that there is increasing tendency towards investment made in the different five year plan.

However the PSU saw the reverse in terms of it’s performance over the years. The expenditure kept on increasing years by year and the profit went on decreasing. The only objective for the Government to keep on running these PSU’s were just to provide the employment so that the people earned their living and ofcourse the VOTE BANK from the various sector It was then decided to do away with the loss-making PSU’s and it was under the Government of Mr Vajapayee where the PSU that were attached to the Aluminium sector was solf off. The first to be sold off was the Bharat Aluminium Company  ( BALCO )  which was situated at Korba. It was here that the Government took a decision to seel off some of the LOSS BEARING insitutions to the private sector

Principle and it’s goal for privatizing the PSU’s
There were some reasons and there were some objectives that were studie to do away with the loss bearing PSU’s and some of them are illustrated as under-::
Discharge huge amount of public resources blocked in non-strategic public sector enterprises & divert them towards more social issues like primary education, health and necessary infrastructure.
Decrease the public debt.
Encourage wider public participation by releasing shares in market.
Help the government reduce interest burden.
To facilitate the growth of the nation’s economy.
Freeing of tangible and intangible resources like labour blocked in maintaining public sector enterprises & reorganizing it towards high priority areas which have scare resources

There were some studies also done with the advantage that the Government would derive by selling these PSU’s to the private players and the advantage to be gained from these-::
1).Disinvestment would picture the private firms towards more market discipline, compelling them to be more effective in their operations, working style. They would act in more responsibly and professional manner by responding to market forces at a greater pace. This would lead towards insertion of corporate governance into privatised companies releasing them from the government control.
2).Disinvestment would yield in fairer distribution of wealth among different individuals, as the shares of public sector enterprises would be offered to small investors and employees.
3).Disinvestment would have a great impact on capital markets, as the more stock inserted into market would bring in more liquidity allowing small investors with easier options to exit from market. It would result in forming more precise benchmarks for estimation of value, pricing.

In many sectors like civil aviation, insurance, telecom, the introduction of private sector has brought in more customer satisfaction by delivering variety of products and services at cheaper rate and better quality. This even increased competition in the market. In case of civil aviation people were fed of Air-India’s services and were demanding entry of private players into field of aviation.

Problems of the Public Sector that it faced at India

The PSU’s over the period of time faced and kept on facing many a problems to operate and these problems were the interference at the various juncture of their crucial operation and at the time of taking critical decisions
The political reasons scored were too far and too many.The main objective of providing the job only to maintain the vote bank and the various Trade Union that were formed and that took place were also the factor that curbed the existence on a platter of profits.Some of the various reasons for the failure of the public sectore in the mid, and in the low category are illustrated as under-::

(i) Endowment Constraints:

Some of the public sector enterprises, particularly some of the loss-incurring enterprises are suffering from endowment constraints as the selection of sites of these enterprises were done on political considerations rather than on rational considerations.

(ii) Under-Utilisation of Capacity:

Under-utilisation of the production capacities are one of the common constraints from which almost all public sector enterprises are suffering. In 1986-87, out of the 175 public sector units 90 units had been able to utilize over 75 per cent of its capacities, 56 units achieved utilisation of capacities between 50 and 75 per cent and the rest 29 units could somehow managed to utilize under 50 per cent of its capacities.
This had been mainly due to the reasons such as long gestation periods, huge in-built capacities, ambitious scales of planning based on inadequate economic (particularly market) data, inadequate motivation, lack of initiatives and obsolescence of the product mix.

(iii) Absence of Rational Pricing:

Public sector enterprises in India are suffering from absent of rational pricing as the prices of their products are determined by such a price policy which has three considerations like:
(a) Profit as the basis of price fixation,
(b) No-profit basis of public utility approach, and
 (c) Import-parity price.
Thus, formal and informal regulations of prices by the Government in the interest of the economy and consumers, in general, and of price stabilization are also responsible for huge losses incurred by some of these enterprises of our country. Moreover, subsidization of the prices of some of the produce by these public enterprises had added a new dimension to the problems.

(iv) Technological Gap:

Some of the public sector enterprises in India are suffering from technological gap as these enterprises could not adopt up-to-date technologies in their production system leading to high unit cost and lower yield. Enterprises like I.I.S.C.O., E.C.L. etc. are suffering from this constraint.

(v) Government Interference:

Much government interference in the day to day activities of the public sector enterprises has reduced the degree of autonomy of the managements in respect of employment, pricing, purchase etc.

(vi) Heavy Social Costs:


Public sector enterprises are suffering from heavy social costs such as the outlays on townships and allied provision of amenities to its employees.

(vii) Operational and Managerial Inadequacies:

The public sector enterprises in India are also suffering from operational and managerial inadequacies and inefficiencies leading to huge wastages and leakages of funds in their day-to-day activities.

(viii) Evil Competition and Sabotage:

Between the public sector and private sector units within the same industry sometimes there exists evil competition which leads to sabotaging of public sector units at a large scale.

(ix) Marketing Constraint:

Some public sector units are even faced with marketing constraints where due to repetitive type of production mix they could not collect a good market for some of their products where the market is already captured by some big private industrial houses leading to a constant increase in inventories.

(x) Surplus Manpower:

In some of the public sector units there is the problem of surplus manpower which is creating drainage of resources unnecessarily leading to increase in the unit cost of production. Political considerations have also contributed towards overstaffing of unskilled workers in these units.

(xi) External Factors:

Workers engaged in the public sector enterprises are lacking sincerity and devotion to their job leading to wastage of working hours which finally affects productive capacities of these enterprises. Moreover, external factors like too much trade unionism, union rivalries and labour troubles are also disrupting the smooth functioning of the production system of these public sector enterprises in the country.
Considering the problems of sickness faced by the Public enterprises, the Standing Conference on Public Enterprises (SCOPE) had recently constituted a committee to study various aspects of sickness of public enterprises.
In its recently submitted report (in December, 1995) on its analysis of PSU problems, the committee felt that too much interference by the Government in areas like autonomy and accountability, constitution of board of directors, continuity to top management and little discretionary powers to management for investment, employment, pricing and wages affected the PSU performance.
:Bad financial planning was another cause of PSU sickness and many sick companies had over- borrowed.
The SCOPE Committee further regretted that the Government as a promoter, was charging one per cent fee from its own sick companies for providing guarantees to bank loans and that too for a limited period of one year at a time whereas private sector promoters were not charging any fee for such guarantee.
Various other problems such as allocation of resources, delays in filling up top-level posts, tight regulations and procedures for investment and restrictions on functional autonomy of the enterprises,
e.g., in respect of labour and wage policy etc. have been creating serious constraints on the operational efficiency of public sector enterprises of the country.
Major Problems of Public Sector and it’s reason of failure

1). Inefficient Management

It has been found that these enterprises are managed by public savants. They are not professionally qualified nor expert in the management of industrial enterprises.
Public enterprises always suffer from delayed decision making. Whereas private enterprises are managed by professionals which make them more punctual in working
2). Lack of efficiency
 They are not run on commercial principles. Their main motto is social welfare, not the profit earning. If a public enterprise in-cursed losses due to efficiency, it is overlooked. Whereas private enterprises are run for profit.
One major area why the PSU’s have been found so ineeficient has been the recruitment of the people at the Executive and the top level and their plan of action.There have been ineeficient decision and policy makers who to please the Government at the Centre have always been a YES MAN to the whims of them who ruled the nation and controlled the PSU. One  major example is when Mrs Indira Gandhi first came to power after staging a comeback in 1980 she chose a Punjabi-Sardarji to head the CIL ie the Coal India Limited. That man ought to be a technocrat but he was a passout in the Arts stream and was a IAS Officer Not knowing the intricacies of the technology that required to handle the mins he took very slipshod decisions believeing those people who were inefficient and were not at all fit to run the industry
There was a major shake up in the postings and in the area of handling the operations This led to the crux of many a situation which were beyond the control of anybody to put the coalmines at the proper place The resultant was a DISASTER for the CIL and it subsidiaries
Major Problems of Public Sector (Economy)
Profitability is the man criterion of their efficiency. It is assumed by the private sector that competition can be faced on the basis of efficiency.
Lack of competition is one of the causes of the insufficiency of public enterprises
 3). Decisions wrong and delayed-:
Delayed in decision making is one of the key problems. Lack of personal interest No one wanted to take responsibility for making decisions.
The loss in public enterprises is a loss of public. It is not a personal loss. Therefore public enterprises have been undergoing losses and the number of losses is the mounting year after year
4). Lack of Innovation and inclination on old process of manufacturing innovations are essential for economic development. Public enterprise lacks it due to monopoly or lack of competition. The private sector is always busy with innovating new techniques, new production methods etc.
For the purpose of cost reduction and profit maximization.
On the other hand, public sector employees are government employees and their jobs are secure. They do not bother about the cost and profit of public enterprises.
5). Helluva and unnecessary Government Control
It has been found that the government is always interfering in the petty decisions of public enterprise. Decision making takes a long time due to the complex procedure in public enterprises.
17 Major Problems of Public Sector (Economy)
Autonomous corporations were set up to avoid excessive government control in public enterprises. It is, therefore, suggested that government control should not be diffused and dispersed over a wide area, but there should be confined to basic issues and key points.
6). Mounting Losses
A review of the working of PSUs reveals that either their profits are deplorably low or they are making losses. The losses are mounting year after year.
Although some of the public enterprises are earning profits, the amount is very thin in comparison to capital employed and our expectations. The losses in public enterprises can be justified during the gestation period but afterward, they must try to wipe out losses and earn profits.
The government should, therefore, make a case by case study of the loss incurring enterprises and take remedial, measures. Major Problems of Public Sector 
7). Interference uselessly and unnecessarily by the Politicians
Public enterprises are becoming a means of fulfilling the political objective of political parties. They have to serve the political interests of the ruling parties.
It has been observed that political factors influence decisions about the location of projects, appointments, and even day operations.
Location of the project is decided on the basis of political interest and not on the basis of the economic viability of the project, resulting in incurring losses.
This approach leads to considerable wastage of capital resources. Politicians are nominated on the board of directors of public enterprises.
8). Non-utilisation of the capacity and wastages of the talents for no reasons
Public enterprise is facing the problems of underutilization of their installed capacity. Thus, the capital resources are not fully utilized by public enterprise.
Therefore, it is necessary to find the causes of low capacity utilization and thus remedy the situation with appropriate measures. Shortage of power, inadequate demand, equipment breakdowns, inadequate raw material, managerial inefficiency etc. Are the major causes of underutilization of capacity.
 9). The runs on the wrong track of Management and wastages of time
 Most of the public sector projects take the long ester time to complete than was initially envisaged. The cost of the projects also run upwards due to delay in completion of projects.
Poor and adequate project planning is the main cause of their delay in construction time schedule and increase in cost.
Therefore, it is essential to prepare the completion of other project and an increase in cost can be avoid

10). Control and the problems relating to the controls


Public funds are invested in public enterprise and govt. Is responsible for the optimum utilization of public funds.
At present, control is exercised by the finance minister and the minister in charge of the undertaking and the parliament to check misuse of public funds.
Parliamentary control over the operations and capital development plans of public enterprises tends to become quite rigid.
There is a need to provide greater functional autonomy in the management of public enterprises, so that they may work efficiently, economically and enthusiastically.
Therefore, there is a problem of coordination between control and autonomy. In order to provide more autonomy in parliament can help by not interfering in the working of public enterprises. 15 Essential Elements of Process of Control.

11). The problems of Profit Control Price Control and Leverages and policies of pricing


Profit earning is not the main object of public enterprises.
They are operated for social welfare. If they indulge themselves in profit-making activities then there will be no difference left between public enterprise.
Regarding price policy, public enterprises should adopt no profit any loss theory or the theory of minimum profit.
So that they can maintain their relevance in the economy. If they follow below cost price policy, they have to bear losses and it cannot be justified.
17 Major Problems of Public Sector (Economy)
If they charge heavy profits, then the social objective cannot be fulfilled. Therefore, they have to keep in mind the social implications of price policy. In many cases, prices are kept low even then the cost. This naturally affects their profitability.
 12). Overstaffing and reduction in the qualitative recruitment


It has been noticed that in the most public enterprise, manpower is in excess of actual requirement.
Due to poor manpower planning, public enterprises are facing the problem of overstaffing. 
 There is a lack of proper education and training of the employees in the public sector.
Therefore, it is suggested to reduce the staff and top positions should be open to its employees.
 13). Problem of over capitalization::
 Public enterprises are facing problems of overcapitalization.
The Input-output ratio in many projects was unfavorable. Defective project planning, lack of cost consciousness, underutilization of capacity, etc.
Are the main causes of overcapitalization in public understandings.

 A study team has mentioned, “The causes leading to over capitalisation can be traced to inadequate planning, delays and avoidable expenditure during construction, surplus machine capacity, tide aid resulting in the combustion to purchase imported equipment on a non competitive basis, expensive turnkey contracts, bad location of projects and the provisions of housing and other amen ties on liberal scale.”

14). Lack of Motivation
There is a lack of motivation in public enterprises. Employees get fixed salaries and other perks. There is no reward for good work and no punishment for bad. Thus, efficient and innovative employees are not motivated

15). Problems of Managerial Structure

Public enterprises are governed by a board of directors. All imported decisions are taken by the board.
Therefore, the success of the enterprise depends on the ability and efficiency of the members of the board
Examples in terms off cases to be taken while selling and disinvesting the PSU

I take two example of the PSU’s the Coal India Limited and the Container Corporation of India Limited



I place these few points to the Government of India to really decide upon the factors before selling or disinvesting the PSU’s these are as under-::

1). Liquid Ratio -: The Liquid Ratio is the CASH in terms of the comparism to it’s expenditure If the ratio is 1:1 then the PSU which holds this ratio may not be disinvested or sold off In other terms if the cash and the expenses are such that for every expenses of Re 1=00 the cash at hand is Re 1=00 then the PSU’s maintain this ratio may not be sold at all.

2). Cash- Assets Ratio-:: The Assets in the hand as compared to the overall cash which includes all the shares that the PSU has of it’s own, the land, building, machineries, it’s stock in account, it’s stock at the godowns etc or at the points of terminals etc , the cash in transit and the cash at the Bank etc  to cite as an example, if that is in the ratio of 2 as compared to the cash in the ratio of one ie for every money worth Re 1=00 of the value of the assets are R 2-00 then these kind of PSU’s may Not be sold at all

3). Operation Ratio-:: This should be in the ratio of 2:1 That means for every operation that the PSU does and if it is Rs 2=00 that it gains out of the same and the expenses of every operation if is Re 1=00 then these kinds of PSU’s might not be changed at all.

4). The Resources Ratio - :: This ratio ought to be in the form of 2:1 That means for every Re 1=00 spend on the resources which could be the human resources, and all the other resources the resources should bear an income of Rs 2= 00 .

Profit ratio-:: This always has to be in the ratio of 2:1 atleast The higher the better It means that for every rupee spent there ought to be an earning of Rs 3=00 and all expenses included is if Re 1=00 then there ought to be a profit of Re 2=00 atleast This is the ratio that ought to be maintained If not maintained the decision making and the policy making authorities ought to be held responsible and thereafter action taken

Points where the PSU’s have failed

A). Initial investment

I take the example of the Coal India Limited and the CONCOR. The Coal India Limited had taken all steps to see the amount of the Coal that could be extracted out of the crust and depending and basing on it they used their excavation personnels to guage the Coal that could have been extracted from one point. They went ahead in that manner by cost estimation and the Coal extraction. Following the veins they created the environment for the resources to stay dwell and complete the task at the places from the Coal could have been extracted. The investment was in accordance to the size of the business

The CONCOR has to transship the Containers Take for example they decided to open two terminals at Bangalore and Nagpur. They never studied the business potential at Bangalore as compared to Nagpur Nagpur does not has the potential to see that everydat atleast 200 containers be it REEFERS or the ORDINARY could be fully filled with the cargo.Nagpur is very poor in agriculture, and in any business except the Coal The Coal mining authorities have many a means like the carriers, the conveyor belts, the other means like the Railway siding points etc to carry it’s Coal Obviously they would not depend and would not give their consignment to the CONCOR at all to carry the Coal

Now when it came to investment the CONCOR used the same size of the earth as compared to Bangalore to construct it’s depot, to maintain that many a staff as equal to Bangalore and to keep that many a container at it’s disposal to maintain them for the business. Bangalore say everyday fills atleast 150 containers, Nagpur hardly fills in 50 or 25. The expenses of the Office and any other such expenses are the same but the business generated is 1/3 of Bangalore The expenses overheads and the administration is as same as Bangalore The Bangalore unit works at 22% of profit, say per annum but the Nagput unit works at 7% as the business per day is 1/3 in comparism to each other Here it is that the PSU’s fails The differences in the business at every terminal points are unequal but the salary is the same.the expenditure is the same and every other expenses are the same.

What the Government so far so long all these years have done is  THEY HAVE KEPT ON BEARING EVERYBODY IN THE SAME SCALE THOUGH THE DIFFEERNCE OF TWO UNITS AS EXEMPLIFIED ARE IN THE RATIO OF 1:3 That multiplied by so many a units/terminals multiply by the number of years That is where the GOVERNMENT did TOSS the PSU’s over the years and that is why the PSU’s are in the DEAD state of affairs

The Government and the Private Sector too have SWOOPED the PSU

I’m citing an example . We had the POLO scooty of the Andhra Pradesh Government, we had a Scooter manufactured at Uttar Pradesh that belonged to the Government of India and we had Mr Rahul Bajaj running the Bajaj Scooter
 The Bajaj Scooter went a far and a long distance to the Government for taking and giving all the aids that are required by the individuals of the Government This they called it GIVE AND TAKE POLICY of the Business.The Government officials handling the Transportation Ministry fell to the ploy of the BAJAJ Scooters and convinced the top of the Government running the country about the “ PRASADAM “ that they would get it from the private player
 Slowly the private player approached the players and the BRAINS of the TOP MANAGEMENT of the scooter manufacturing the Government scooters and it’s model. Greasing their palm they got the entire idea of the market, not only that they were ie some of them were  PURCHASED by the private players, the important machines drawings  etc were purchased , slowly the people were purchased, the top brain of the Government sector in the scooter manufacturing arena were brought off, they were sold and many were broken to join them. Since these private players were hands-in-hands with the top notch Government officials these private players dictated and decided the prices at which the scooters were ought to be sold, the most selling market was given to them to sell the scooters and the useless one’s were left to the Government sector to sell it, the Government just could not put it’s feet to regulate and control the prices as the private players were doing it the resultant was SLOWLY but surely the GOVERNMENT units faced closure and the private one’s became a KING and the EMPEROR of the scooter industry and it’s market This is how the TWO scooter manufacturing compay the POLO of Andhra Pradseh Government and the one at Kanpur which belonged to the Govermnment of India has gone with the wind WE HAVE Mr RAHUL BAJAJ BARKING AT THE MODI GOVERNMENT  SHUT UP Mr Bajaj I say

This is how the Indian Airlines lost to Kingfisher when the UPA-II and Mr Chidambaram were the TOP-NOTCH honchos in the Ministry of UPA  this is how the PETRO-CHEMICALS LOST OUT TO the RELIANCE and the AMBANIS .Where is Indian Petrochemical Corporation Limited a PSU  that was Head Quartered at Baroda The Ambanis SWALLOWED that  This are the way that the number of PSU that stood at over 1000 units till the end of  1980 when Mrs Indira Gandhi took over now stands to about less than 30 in numbers These PSU’s have been swallowed away by the SHARKS that were in the Government along with the HELP of the BIG PLAYERS that came in from that arena of the private zone to help not only the Government to swallow these PSU’s but to CREAM it for them to LICK it effortlessly

Having stayed in a FAMILY where my Father his eldest brother the three sons of the eldest brother, the one son again of the second brother of my father our family has in toto put over 188 years of service in the Coal India Limited and I was born at the Colliery. My Father was the Additional Chief Engineer with two and a half years of his service remaining at the CIL when he lost his life and I was given a chance to join the CIL as a Assistant Manager ( Mktg) with a salary of Rs 3,000=00 and was to be given a E-2 job to start with,  in 1988 I decided to say “NO” to that job I know the COAL INDIA LIMITED by my palms and I have about 10 friends still working in the Container Corporation of India  Limited an organization which had given me a job of Sr Manager in 1994 which I refused  I know the in’s-and-the –out’s of these two PSU and hence the examples of the same.

Why Has The “ PSU’s “ In India Failed
The mute question is  WHY HAS THE PUBLIC SECTOR UNDERTAKINGS IN INDIA HAS FAILED The answer is the DILLY-DALLY-YES-OFCOURSE – ATTITUDE of the respective Governments both at the Centre and at the State
Is Not the Private and the Government sector existing at the countries like Russia, Italy, America, Germany Japan, China and South Korea. Is not the Diamond Sector there which are run by the private sector and the Government sector at South Africa.. Why is that those country have these sector running at full steam with full profit and that the Indian  continent especially at India , has seen this sector collapse like anything What could be the reason

When India secured Independence- to provide the job and the Social security through the jobs it was decided that India would run on CAPITALISM , SOCIALISM and the MIXED ECONOMY. The State and the Centre will run their establishment on the Government rules and the Private players will have to follow the Governmental rules to run their sector on those lines where the Government succor was needed by them to run their enterprises. This ECONOMY  was termed as “ MIXED ECONOMY “ of the Government of India then

It and this principles too were followed by the other countries I have mentioned The difference is and has been that THE PRICING OF THE PRODUCT WAS FIXED BY THE GOVERNMENT The PRINCIPLES were FAIR- AND-SQUARE The Government at those countries made it abundantly clear that WE WILL RUN THE SHOW YOU RUN THE BUSINESS and there has been NO leverages on the Government policies in those countries. Here we have every principles changed in every seconds here to please the business class from the private sectors

This has been the reason and this is the reason  NO COMPROMISE ON THE PRICES FIXED BY THE GOVERNMENT AT THOSE COUNTRIES AND COMPLETELY GIVING THE LEVERAGE TO THE PRIVATE PLAYERS TO DICTATE THE TERMS MADE ALL THE DIFFERENCES AND WE SEE THE PSU LICKING THE DUST


As said earlier the Government made the PSU’s the MOLLS of them and also to the private players  to play with it. 
PSU’s:: Is It The Molls Of The Government
Definitely the way the Government has handled these PSU’s these definitely have been handled as the MOLLS that are available for EVERY BENEFIT. The Government have played with this PSU’s the way they wanted to.We have Mr Chidambaram saying so many a COCK-A-DOODLE-DOO on the economy and the PSU’s for many a years Does this BIG-COCK-COCKA-DOODLE-DOO knows that the CYCLE CORPORATION OF INDIA a PSU was situated at Chennai when he first came into the politics to hold the Ministry of Finance  That unit was the FIRST to go off the air and to the wind ever since Mr Chidambaram took over as th Finance Minister of the country.Has he even HEARD that name- NO believe me NO . If I were to stand in front of my BOSS of Indian Duplicators Comnpany Limited the organization from where I started my career in the marketing and sales,  say Mr Irani who was the Zonal Manager of Gestetner during those days and had to give a reply the way Mr Chidambaram would say no, Mr Irani would have SAID me on my FACE- “ FUCK OFF “ YOU BENGALI PIMP Go and take care of the market where the prostitute do the business  YOU ARE NOT FIT ENOUGH TO BE A SALESMAN AT GESTETNER

This is the reason how and why an organization like Gestetner could stay in the Indian market for about 75 years or more and this is the reason why the PSU’s have been made a PROSTITUTE of the MARKET to dance to the whims and the fancies of those who played with it.

These players have made it a kind of a SOUL which could be termed that the PSU have been the Government’s MOLL Sadly we have the Mallaya’s the Ambanis, the Bajaj’s the one’s who LOOT the Banks and above all the Government entities to play with it The sufferres are those who have toiled in it for over 35 years as an individuals to make that

The Container Corporation works at about 22 % prfits at its maximum and about 7 % profit at it’s minimum and it Turn Over is around 48,000 crores and ther Coal india Limited has a reserve of about another 500 years of coal under it’s belt and it operates at about 11% profit on average

Mr BJP and its era of MODI 2.0 PLEASE DO NOT SELL OR DISINVEST IN THESE TWO PSU
YES - your decision to SELL the Indian Airlines, the AIR INDIA and the BPCL are 100% correct

Any EARS to listen to me If yes  YOU WOUYLD BE SERVING THE GOD IF YOU PLESAE LISTEN TO MY ADVISE

With REAL affection and REGARDS

Shyamal Bhattacharjee








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