Mnc in India Essay

To help in rapid growth and industrialization and create necessary infrastructure for economic development. 2. Promote redistribution of income & wealth 3. bring ab discover employment opportunities 4. Promote regional balance development 5. Promote significance substitution save and earn foreign exchange for country. 6. Basic stem (STC, Railways, SAIL) Organization of Public Sector Ministry ( Railway, Finance etc) Departmental nethertaking (Defense, erect & Telegraph, Defense production unit) Statutory Corporation( LIC, AIR India, IFC,RBI,ONGC, etc.. Central Board (Bhakra Nangal, Hira Kund ,Nagarjun Sagar dam) regimen Companies ( Ashok Hotels, ITI, HMT Hindustan shipyard etc) Pricing Practice ?Administrative Price Price fixed by Government ?No profit No loss Price ( DVC, Hindustan antibiotics, Hindustan Insecticides) ? be Plus Price ITI, HAL, Bharat electronic ? Competitive Price ?Follow the attractor ?Subsidized Prices ?Discriminatory Prices Private Sector ? Privatization Transfer of ownership and fancy of an existing state-supported heavens enterprise ? Privatization may be broad(a) or partial.It may be selective i. e.. Some function atomic number 18 transformed to the hole-and-corner(a) orbit, which other ar retained in earthly concern sector. ?Increase in competition . The Privatization movement The move towards privatization has gained momentum since 70s. The following are usually mentioned reasons 1 The emergence of conservative organization in principal industrial countries 2 The emergence of multinational entities 3 Technological changes The Privatization movement contd. 4 Emergence of topical anaesthetic capital mart and entrepreneurship 5 Dissatisfaction with performance of public sectorReason for Indian Privatization 1. weaken Budget deficit 2. Spectacular growth by economies of Korea, Taiwan, Malaysia in private sector 3. Galloping cost of disposal intervention in trade and patience & procedural difficulty 4. Collapse of USS R& communist disposal in eastern Europe 5. Changes in China 6. Emergence of professional management 7. IMF & mankind Bank extended arm to capitalism 8. Gulf crisis 9. Lack of read in economy 10. Integration of world trade 11. Developed local capital market and Financing Institution Recent Reasons To Strengthen contender To improve public finance To fund Infrastructure Growth righteousness of share holders To reduce unnecessary interference More disciplined fight force The main reason for increased efficiency gain as a result of privatization are attributed to (i)Less political interference in stopping point qualification (i)Staff remuneration is more closely linked to productivity and positivity (ii)Firm are exposed to financial market discipline as oppose to government support (iii)Firms cost reducing effort are higher under competitive private ownership Advantages of public sector organizations Govt . Control in sensitive scopes ? More employment ? Effective conclusiv eness fashioning ? Public accountability ? Access to all ? More employee satisfaction-better liveness work balance ? Recognition and honor ? Job security Disadvantages of public sector organizations ?Inefficiency results due to the size of the organization ?lack of incentive for employees ?losings must be met by the taxpayer ? Political interference ? Less guest satisfaction ? High cost of delay/red tapism Disadvantages of public sector organizations contd. ?Headless plants ?Lack Demand supply relation ?Over/Under capacity ?Fear of ScamsAdvantages of private sector organizations ?Quick decision making ?No political interference ?More customer satisfaction ? patrician access to capital market Disadvantages of private sector organizations ?Chances of mismanagement ?ineffective decision making ?Less focus on poor tidy sum Ways of Privatization ? Disinvestment ? Contracting ? Franchising ? Permitting private sector enter into PSU reserved area ? Liquidation ? Leasing Disinvestment Long Term strategy on disinvestment 1. Strengthen economic PSU to promote greater competitiveness to enable payment of higher dividends to the government to enhance Value 2.Financial restructure and revive loss making PSU to invite private capital for long term turnaround. 3. Enhance government receipt by disinvestment in profitable PSUs Initially 40 out of the 245 PSUs were referred to the disinvestment committee Conclusion ? Public sector enterprises ? Private sector enterprises ? Privatization ? exact of privatization ? Obstacles of privatization ? Ways of privatization- Disinvestment ? Advantages and disadvantages Thanks to.. Prof. Suneel Gupta Associate Professor, Ghs-IMR, Kanpur Prof. Mansur Ali Khan NSB Prof. Surjyabrat Buragohain NSB Thank you all ?SIVAPRASAD P V ? PREMKUMAR ? VIGNESH ? MANOJ