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India Means BusinessHow the Elephant Earned its Stripes$
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Kshama Kaushik and Kaushik Dutta

Print publication date: 2012

Print ISBN-13: 9780198072614

Published to Oxford Scholarship Online: September 2012

DOI: 10.1093/acprof:oso/9780198072614.001.0001

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State-owned Enterprises or Public Sector Undertakings

State-owned Enterprises or Public Sector Undertakings

Chapter:
(p.86) 4 State-owned Enterprises or Public Sector Undertakings
Source:
India Means Business
Author(s):

Kshama V. Kaushik

Kaushik Dutta

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198072614.003.0004

This chapter examines the role of state-owned enterprises or public sector undertakings (PSUs) in Indian economy. PSUs are government-controlled companies or statutory corporations set up by an Act of Parliament, or departmental enterprises of the government like in the defence sector, railways, or telecommunications. This chapter identifies the management problems of PSUs and describes how pressure to stay relevant is forcing several large PSUs to shake up their style of management and emulate the dynamics of the private sector. It contends that PSUs have been instrumental in creating basic economic infrastructure in the country and developing a deep bank of technical skills; clearly, though, they can deliver better value only by sharpening their commercial orientation.

Keywords:   PSU, Indian economy, defence sector, railways, telecommunications, management problems, technical skills

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