Between 1991-92 and 2002-03, state level public enterprises continued to incur net losses and showed the chronic tendency of accumulating losses. The paper provides an overview of SLPEs in India, in terms of various financial parameters, followed by a discussion of the privatisation scenario and the different practices of states in this regard. The differentiating features of the privatisation of SLPEs vis-à-vis central public enterprises are outlined to highlight the challenges states face in retaining their portfolios of SLPEs.
