ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Bhopal- A Dim Memory Already

had been provided for in the Seventh Plan for the entire plan period? Further, the gap between what the government is able to set aside from its budget for financing the plan and the total plan outlay was to be made up by the surpluses of public sector enterprises. As per the Seventh Plan document, public enterprises under the central government, including railways and posts and telegraphs, were to contribute Rs 51,694 crore to the centre's plan. Of this, Rs 37,454 crore was to be the gross surplus of these enterprises on the basis of 1984-85 rates of tariffs, fares and product prices, and they were to mobilise an additional Rs 14,240 crore through Nationalisation of their pricing policy', improvement in capacity utilisation, raising productivity levels, drawing down of inventories, etc. In fact, despite many increases in the prices of their products and services, the public enterprises' contribution to the plan has had increasingly to take the form of resources raised through market borrowing. Such borrowing has been made possible by the government permitting these enterprises to issue debentures at high rates of interest and with attractive tax concessions attached to them. The public enterprises have had to resort to borrowing since they have been unable to generate internal surpluses on anywhere near the scale expected in the plan. But has the government considered how the servicing of loans raised on these terms is likely to further attenuate these enterprises' ability to generate internal resources?

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