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

A+| A| A-

Public Enterprises and Private Purposes

A basic premise underlying much of the critical writing on public enterprises is that there is something wrong with public enterprises per se. The author contests this view that public enterprises are inherently inefficient and contends that a crucial aspect has been the objectives and the priorities with which the public enterprises have been run. The focus of the paper is on the manufacturing enterprises under the central government FOR quite some time now the public enterprises (PEs) in India have been subject to attack. The critics refer to the low financial return of the PEs and their poor service, shortages and delays in delivering goods and services, etc. Of course others point out that the deficiencies of the PEs have often been exaggerated. Nagaraj (1993), for example, found that the financial performance of the PEs, in India improved in the 1980s and their resource generation effort is now comparable to that of the private corporate sector. Some PEs, for example, Bharat Heavy Electricals has significant achievements to their creduit [Lochan 1991; Ramamurti 1987]. But it is generally agreed that the performance of the PEs on the whole has been less than their potential and below the expectations with which they were set up.

Dear Reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Back to Top