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 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 lakh people (excluding casual workers) in
The share of gross value addition in CPSEs in GDP stood at 6.3 % in

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