public sector indiaPosted: December 22, 2011
Central Public Sector Enterprises
At the time of independence there were only few Central Public Sector Enterprises like the Railways, the Posts and Telegraphs, the Port Trusts the Ordinance and Aircraft Factories in India. The Industrial Policy Resolution of 1956 gave the public sector an important role in the Indian economy. There were 246 CPSE under the administrative control of various ministries/ departments as on March 31, 2009. The total investment (paid-up capital plus long-term loans) in all the CPSEs together stood at Rs 5,28,951 crore as in end March 2009. The major share in this investment belonged to the service sector (46.1 per cent) followed by electricity (26.2 per cent), manufacturing (18.1 per cent) and mining (8.8 per cent). A great deal of investment in CPSEs is being made through internal resources rather than through investment from outside. Of the total, 158 CPSEs made net profit and 54 net loss in 2008-09.
Year Number of
CPSU Turn Over Net Profit
1991-92 237 1,33,906 2,356
2001-02 231 4,47,529 25,978
2005-06 226 8,37,295 69,536
2006-07 217 9,64,410 69,536
2007-08 247 10,94,484
2008-09 246 12,63,405 98652
Central Public Sector Enterprises in India
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Mahanavaratnas – 4
Government of India decided to grant Mahanavaratna status to four Central Public Sector Enterprises in December 2009. Mahanavaratnas are National Thermal Power Corporation (NTPC), Oil and Natural gas Commission ( ONGC), Indian Oil Corporation (IOC) ans Steel Authority of India Limited ( SAIL).
Navaratnas – 14
In July 1997 , the Government had identified 9 Central Public Sector Enterprises as Navaratnas. Later 9 CPSE were added and four units were elevated to Mahanavaratnas. There enterprises have comparative advantage and potential to emerge as global giants. These CPSEs have been given enhanced autonomy and delegation of powers to incur capital expenditure, to enter into technology joint ventures, to introduce organizational restructuring, to create and to wind up below board level posts, to raise capital from domestic and International market, to establish financial joint ventures and to wholly owned subsidiaries.
In October 1977 the Government of India had also decided to grant mininavaratna status to provide enhanced autonomy and delegation of financial powers to some other profit making companies subject to certain eligibility conditions and guidelines to make them efficient and competitative.