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
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
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
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.
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.
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.
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.
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.
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.
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
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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