Mnc in India

PREM KUMAR.S VIGNESH .P

MANOJ KUMAR .U
SIVAPRASAD .P . V

 Public sector enterprises  Objectives, organization  Pricing policy  Private sector  Privatizations movement  Reason for privatization  Obstacles of privatization  Ways of privatization-disinvestment  Advantages/disadvantages  Conclusion

Contents

Public Sector
A public enterprise is an organization which is i) Owned by public authorities including central state or local authorities to an extent of 50% or more ii)It is established for achievement of a defined set of public purpose,which may be multidimensional

Objective
1. To help in rapid growth and industrialization and create necessary infrastructure for economic development. 2. Promote redistribution of income & wealth 3.Create employment opportunities 4.Promote regional balance development 5. Promote import substitution save and earn foreign exchange for country. 6. Basic Infrastructure (STC, Railways, SAIL)

Organization of Public Sector
•Ministry ( Railway, Finance etc) •Departmental Undertaking (Defense, Post & Telegraph, Defense production unit)

•Statutory Corporation( LIC, AIR India, IFC,RBI,ONGC, etc..) •Central Board (Bhakra Nangal, Hira Kund ,Nagarjun Sagar dam)
•Government 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)
Cost Plus Price – ITI, HAL, Bharat electronic Competitive Price

Follow the leader
Subsidized Prices

Discriminatory Prices

Private Sector
 Privatization: Transfer of ownership and control of an

existing public sector enterprise  Privatization may be full or partial. It may be selective i.e.. Some function are transformed to the private sector, which other are retained in public sector.

Increase in competition .

The Privatization movement
The move towards privatization has gained momentum since