This document summarizes key information about central public sector enterprises (CPSEs) in India. It notes that there were 5 CPSEs initially in the first five-year plan, growing to 249 by 2010. CPSEs play major roles in key sectors like energy and mining. In 2008-2009, CPSEs contributed over Rs. 151,000 crore to the government and employed nearly 15 lakh people. The share of CPSEs' gross value added to India's GDP was 6.3% in 2009-2010. The document also outlines the different forms of PSUs and their characteristics, contributions, the role of liberalization and competition, disinvestment policies, and efforts to revive sick PSUs

2. • 5 CPSUs on the eve of the first plan
• 249 CPSEs as on 31st March 2010
• CPSEs are major players in their respective
sectors
– Eg. NTPC, ONGC, CIL

3. • In 2008-09 CPSEs contributed Rs 151,543
crore in the form of excise duty, customs duty,
corporate tax, interest on central government
loans, dividend and other duties and taxes
• Employed 14.91 lakh people (excluding casual
workers) in 2008-09
• The share of gross value addition in CPSEs in
GDP stood at 6.3 % in 2009-10

4. • Three forms of PSUs
– Departmental Undertakings
– Government Companies
– Public Corporations

5. Departmental Undertakings
• Most prevalent before independence
• Many exist till today
– Eg. Railways, post and telegraph, defence
• Features
– Financed by appropriations from the govt treasury
– Their receipts are also credited into the treasury
– Their financial operations subject to the budget,
accounting and audit controls similar to govt activities
– Their permanent employees are civil servants
– They do not have a separate entity of their own; form
a part of the govt

7. Some functions of internal
management
• Strike a balance between social motive and efficient financial
management of the enterprise. Social motive cannot be an excuse
for mismanaging the funds and thereby making losses
• Personnel management is very important. Training and education of
the employees
• Where the company is in competition with other firms it should
follow an aggressive market policy
• Lay out clear-cut statement of objectives and obligations of the
undertaking
• Lay out a corporate plan
• Link the plan with the national plan
• Appropriate inventory management
• Choice of technology

8. Contribution of PSUs
• Assess in terms of
– Contribution to GDP
– Employment
– Strategic output
– Led to rapid industrialisation
– Redistribution of wealth
– Welfare programmes
– Contribution to the govt treasury
– Created opportunities for employment: representation of
SCs and STs in the management
– Promoting balanced regional development
– Saving and earning foreign exchange

9. BRPSE
• Board for Reconstruction of Public Sector
Enterprises
• Estd. 2004
• An advisory body to advise the govt on the
strategies, measures and schemes for
strengthening, modernizing, reviving and
restructuring of public sector enterprises.

10. Liberalisation
• Sectors that were exclusive preserve of the PSEs
were opened to the private sector
• CSPEs therefore are faced with competition from
both the domestic private sector companies and
the large MNCs
• The monopoly market conditions have given way
to oligopoly and competitive market conditions
and there is intense competition in the market
• The market shares of CSPSEs in industries such as
telecom, oil refinery, coal, power, steel and
transportation has declined over the years

11. Disinvestment
• Began in 1991-92
• The current policy on disinvestment was
approved in 2009
• The objective of disinvestment policy is to
develop people’s ownership of CPSEs and to
share in the their wealth and prosperity while
ensuring that Govt equity does not fall belwo
51% and govt retains the management control

12. Revival of sick PSUs
• Number of sick PSUs
– 2003: 111
– 2010: 45
• Sick CPSEs brought under the purview of Sick
Industrial Companies (Special Provision) Act,
1985
• BRPSE set up in 2004