Performance of public sector enterprises, Microeconomics

Performance of Public Sector Enterprises:

Data reveal that the performance of the much-maligned public enterprises has shown a distinct improvement during the last 9 years. Gross profit as a per centage of capital employed was 11.61 per cent in 1993-94, it improved to 15.88 per cent in 1995 and further improved to 17.5 per cent in 2002-03. Similar trend was noticed in net profit which improved from 2.84 per cent in 1993-94 to 7.7 per cent in 2003-04. This indicates an improvement in the performance of Central Government Enterprises. The question that becomes relevant is: Is it, therefore, desirable to undertake disinvestment of CPSUs? The answer on all practical considerations is clearly in the negative. It would be far more rewarding if the Government gave them greater autonomy to undertake business decisions. By 2002-03, a total 100 PSUs signed Memorandum of Understanding (MOUs). A review of performance reveals that out of 100 enterprises, 45 were rated as excellent, 19 very good and 14 as good. If 78 enterprises out of a total of 100 have shown an improvement in performance, then it becomes evident that it is more desirable to innovate measures to improve their performance, rather than weaken them by undertaking disinvestment.

 

Posted Date: 11/15/2012 2:39:27 AM | Location : United States







Related Discussions:- Performance of public sector enterprises, Assignment Help, Ask Question on Performance of public sector enterprises, Get Answer, Expert's Help, Performance of public sector enterprises Discussions

Write discussion on Performance of public sector enterprises
Your posts are moderated
Related Questions

What is meant by the multifaceted nature of the U.S. health care system? How is health care financed in the U.S.? What is the advantage and disadvantage of the U.S. multi-payer sys

CROP PATTERNS: Analysis of crop patterns in India should relate to the following aspects:  a) The relative significance of different crops/crop groups in the overall area u

Comparison of sameulson revealed preference theory with the Hicksian revealed preference theoru

Q. Define Debt? Debt:Total amount of money owed by a company, individual or other organization to banks or other lenders is their debt. It represents accumulated total of past

arguments in favour and against of Theory of Profit Maximization

Technical Economies: They are economies that accrue from the use of large machines with emphasis on full utilization and efficiency in production. First, there are some equip

Iso-quant: The dots in the above Figure denotes the various combinations of (L, K) that the producer can pick up from form to produce. Among these combinations, there can be t

Explanation of the Break in Trend: An economy can grow in three different ways or all three ways may work simultaneously:   1)  Horizontally, i.e., it may go on producing m

Choosing Output in Long Run * In long run, a firm can change all its inputs, including size of the plant. * We are taking free entry and free exit. * Accounting