Public Sector Reforms.pptx

Presentation about public sector

1. Introduction When India gained independence in 1947, the economic condition of the country was very poor. There were hardly any public sector enterprises other than the Railways and the Postal Services. It was determined that going forward public sector would play a big hand in our economic development. The 1948 Resolution envisaged development of core sectors through the public enterprises And then again in the 1990’s the trend changed again. So let us take a more detailed look at the changing role of public sector. The first few Five Year Plans were all designed to promote and safeguard the public sector. But then came the era of privatization and globalization in 1991. The role of public sector companies was reevaluated. Now the public sector was to actively participate in a competitive market with the private enterprises In India, a government-owned corporation is termed as a public sector undertaking (PSU). This term is used to refer to the companies in which the government (either the federal, Union Government or the many state or territorial governments, or both) own a majority (51 percent or more) of the company equity.

2. The Public sector can be classified into:-

3. Need for Public Sector Reforms Lack of competition:  In Public Sector Enterprises, the level of profit is low as compared to the private sector, this was due to lack of competition and over protection to PSEs. Long gestation period:  For the completion of any project, the Public Sector Enterprises normally takes much more time than expected. Over capitalization:  In many cases, the actual cost of the planned project exceeds the original cost due to mismanagement and Bureaucratic hurdles. Inefficient management:  Lack of management and planning in Public Sector Enterprises has created many issues and challenges for Public Sector Enterprises. Lack of efficient and trained staff: Lack of skilled manpower in the Public Sector Enterprises is also one the important issue due the which the production and efficiency have decreased Employment Opportunities : Too provide the employments to the people