Briefly discuss the problems faced by public sector undertakings in India.
Briefly discuss the problems faced by public sector undertakings in India.
The problems faced by PSUs are as follows:
(i) Underutilisation of capacity: The PSUs operate much below the optimum level of output. This inflates the costs of the goods or the services.
(ii) Pricing: The PSUs operate with a social motive and generally provide goods and services at subsidised rates, The pricing strategy followed by them is unprofitable.
(iv) Heavy losses: Because of higher burden of cost and unprofitable pricing policy, PSUs incur heavy losses.
(v) Sick Units: A number of sick PSUs are operational, which prove to be a burden for the country's budget.
(vi) Lack of Autonomy: PSUs are generally not allowed to act as autonomous units. This results in a delay in decision making, leading to a loss unavailing business opportunities.
(vii) Bureaucratic Delays: The PSUs suffer from various bureaucratic delays due to red-tapism, faulty planning, procedural delays, etc.
The problems faced by PSUs are as follows:
(i) Underutilisation of capacity: The PSUs operate much below the optimum level of output. This inflates the costs of the goods or the services.
(ii) Pricing: The PSUs operate with a social motive and generally provide goods and services at subsidised rates, The pricing strategy followed by them is unprofitable.
(iv) Heavy losses: Because of higher burden of cost and unprofitable pricing policy, PSUs incur heavy losses.
(v) Sick Units: A number of sick PSUs are operational, which prove to be a burden for the country's budget.
(vi) Lack of Autonomy: PSUs are generally not allowed to act as autonomous units. This results in a delay in decision making, leading to a loss unavailing business opportunities.
(vii) Bureaucratic Delays: The PSUs suffer from various bureaucratic delays due to red-tapism, faulty planning, procedural delays, etc.
