INTRODUCTION

A state-owned enterprise in India is called a public sector undertaking (PSU) or

a public sector enterprise. These companies are owned by the union government of
India or one of the many state or territorial governments or both. The
company stockneeds to be majority-owned by the government to be a PSU. PSUs
strictly may be classified as central public sector enterprises (CPSEs) or state level
public enterprises (SLPEs). In 1951 there were just five enterprises in the public
sector in India, but in March 1991 this had increased to 246.
CPSEs are companies in which the direct holding of the Central Government or
other CPSEs is 51% or more. They are administered by the Ministry of Heavy
Industries and Public Enterprises.

5 important Features of Public Enterprises:

1. State Ownership:
A public enterprise is wholly owned by the Central Government or State
Government(s) or local authority or jointly owned by two or more of them, in case
the enterprise is owned both by the Government and private sector, the State must
have at least 51 percent share in ownership.

2. State Control:
The ultimate control of a public enterprise lies with the Government which appoints
its Board of Directors and the Chief Executive.
3. Government financing:
The whole or a major portion of the capital of a public enterprise is provided by the
Government.

4. Service Motive:
The primary aim of a public enterprise is to render service to the society at large. It
may have even to incur losses for this purpose. However, public enterprises are
expected to generate surplus in course of time.

5. Public Accountability:
Public enterprises are financed out of public money. Therefore, they are accountable
for their results to the elected representatives of the public, i.e., the Parliament and
the State Legislature. That is why; the working of public enterprises is scrutinized by
the Committees of the Parliament or the State Legislature.

6. Autonomous Bodies:
Public enterprises are autonomous or semi- autonomous bodies. In some cases they
work under the control of Government departments. In other cases these enterprises
function as companies and statutory corporations.
 DIFFERENCES between
public&private
sectorEnterprises

BASIS
COMPARISO PUBLIC SECTOR PRIVATE SECTOR
N

Meaning The section of a nation's The section of a nation's

economy, which is under the economy, which owned and
control of government, whether controlled by private
it is central, state or local, is individuals or companies is
known as the Public Sector. known as Private Sector.

Basic objective To serve the citizens of the Earning Profit

country.

Raises money Public Revenue like tax, duty, Issuing shares and debentures
from penalty etc. or by taking loan

Areas Police, Army, Mining, Health, Finance, Information

Manufacturing, Electricity, Technology, Mining, Transport,
Education, Transport, Education, Telecommunication,
Telecommunication, Manufacturing, Banking,
Agriculture, Banking, Construction, Pharmaceuticals
Insurance, etc. etc.

Benefits of Job security, Retirement Good salary package,

working benefits, Allowances, Competitive environment,
Perquisites etc. Incentives etc.
 BASIS
COMPARISO PUBLIC SECTOR PRIVATE SECTOR
N

Basis of Seniority Merit

Promotion

Job Stability Yes No

Role of public sector Enterprises
for economic development

1. Generation of Income:
Public sector in India has been playing a definite positive role in generating income
in the economy. The share of public sector in net domestic product (NDP) at current
prices has increased from 7.5 per cent in 1950-51 to 21.7 per cent in 2003-04. Again
the share of public sector enterprises only (excluding public administration and
defence) in NDP was also increased from 3.5 per cent in 1950-51 to 11.12 per cent in
2005-06.

2. Capital Formation:
Public sector has been playing an important role in the gross domestic capital
formation of the country. The share of public sector in gross domestic capital
formation has increased from 3.5 per cent during the First Plan to 9.2 per cent
during the Eighth Plan. The comparative shares of public sector in the gross capital
formation of the country also recorded a change from 33.67 per cent during the First
Plan to 50 per cent during the, Sixth Plan and then declined to 21.9 per cent in 2005-
06.

3. Employment:
Public sector is playing an important role in generating employment in the
country.In 2003, the public sector offered employment opportunities to 18.6 million
persons which was 69 per cent of the total employment generated in the country as
compared to 71 per cent employment generated in 1991. However, there is
considerable decline in the annual growth rate of employment in the public sector
from 1.53 per cent during 1983-1994 to 0.80 per cent during 1994- 2004.

Moreover, about 69.0 per cent of the total employments are generated in the public
sector. Moreover, at the end of March 2004, about 51.7 per cent of the total
employment (i.e. about 96 lakh) generated in public sector is from Government
administration, community, social and personal services and the remaining 48.3 per
cent (i.e., nearly 89.7 lakh) of the employment in public sector is generated by
economic enterprises run by the Centre, State and Local Governments.

4. Infrastructure:
Without the development of infrastructural facilities, economic development is
impossible. Public sector investment on infrastructure sector like power,
transportation, communication, basic and heavy industries, irrigation, education and
technical training etc. has paved the way for agricultural and industrial development
of the country leading to the overall development of the economy as a whole. Private
sector investments are also depending on these infrastructural facilities developed by
the public sector of the country.

5. Strong Industrial base:

Another important role of the public sector is that it has successfully build the strong
industrial base in the country. The industrial base of the economy is now
considerably strengthened with the development of public sector industries in
various fields like—iron and steel, coal, heavy engineering, heavy electrical
machinery, petroleum and natural gas, fertilizers, chemicals, drugs etc.

The development of private sector industries is also solely depending on these

industries. Thus by developing a strong industrial base, the public sector has
developed a suitable base for rapid industrialization in the country. Moreover, public
sector has also been dominating in critical areas such as petroleum products, coal,
copper, lead, hydro and steam turbinecountry

6. Checking Concentration of Income and Wealth:

Expansion of public sector enterprises in India has been successfully checking the
concentration of economic power into the hands of a few and thus are redressing the
problem of inequalities of income and-wealth of the economy. Thus, the public sector
can reduce this problem of inequalities through diversion of profits for the welfare of
the poor people, undertaking measures for labour welfare and also by producing
commodities for mass consumption
 History of Hindustan petroleum
corporation Limited

HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso
Standard and Lube India Limited by the Esso (Acquisition of Undertakings in India)
Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by the
Government of India in 1976 and merged with HPCL in 1978 by the CORIL-HPCL
Amalgamation Order, 1978. Kosan Gas Company was merged with HPCL in 1979
by the Kosangas Company Acquisition Act, 1979.
In 2003, following a petition by the Centre for Public Interest Litigation (CPIL),
the Supreme Court of Indiarestrained the Central government from privatising
Hindustan Petroleum and Bharat Petroleum without the approval of Parliament. As
counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the only way
to disinvest in the companies would be to repeal or amend the Acts by which they
were nationalised in the 1970s. As a result, the government would need a majority in
both houses to push through any privatisation.
HPCL has been steadily growing over the years. The refining capacity increased
from 5.5 million metric tonnes (MMT) in 1984/85 to 14.80 million metric tonnes as of
March 2013. On the financial front, the net income from sales/operations grew
from ₹2687 crores in 1984–1985 to ₹2,06,529 crores in financial year 2012–2013.
During FY 2013-14, its net profit was ₹1740 crores.
 Manufacturing units and main
products of hindustan petroleum
corporation Limited

Manufacturing units of hindustan petroleum corporation

Limited:

HPCL has a number of refineries in India. Some are listed below:

 Mumbai Refinery: 7.5 million metric tonnes (MMT) capacity

 Visakhapatnam Refinery: 8.3 MMT at Visakhapatnam

 Mangalore Refinery: 9.69 MMT at Mangalore, Karnataka (HPCL has a

16.65% stake).

 Guru Gobind Singh Refinery: 9 MMT at Bathinda, Punjab (HPCL and Mittal
Energy each have a 49% stake).

 Barmer Refinery: It is planned for 9 MMT capacity. It is a joint venture.

HPCL 74%, Rajasthan Government 24%.

Main products of hindustan petroleum corporation Limited :

 Petrol: Petrol is known as motor spirit in the oil industry. HPCL markets the
product through its retail pumps all over India. Its principle consumers are personal
vehicle owners.
 Diesel: Diesel is known as high speed diesel in the oil industry. HPCL markets
the products through its retail pumps as well as terminals and depots. Its consumers
are regular auto owners, transport agencies, industries, etc.

 Lubricants: HPCL is the market leader in lubricants and associated products.

It commands over 30% of market share in this sector. The popular brands of HP
lubes are Laal Ghoda, HP Milcy,[13] Thanda Raja, Koolgard, Racer4.

 Liquified petroleum gas: The HPCL brand of LPG is a popular brand across
India for domestic and industrial uses.

 Aviation turbine fuel: With major air service facilities in all major airports of
India, HPCL is a key player in this sector supplying ATF to major airlines. It has an
accomplishment of sorts to supply fuel to US
 Swot Analysis hindustan petroleum
corporation Limited

Hindustan Petroleum Corporation Limited (HPCL) (is an Indian state-owned oil and
natural gas company with its headquarters at Mumbai, Maharashtra. It has about
25% marketing share in India among PSUs and a strong marketing infrastructure.

Swot Analyses of the Hindustan Petroleum Corporation is given below 

Strengths
1.India's major oil and gas company
2.Operates largest Lube refiniery in India
3.Large product portfolio
4.Owns and operates the largest Lube Refinery in India producing Lube Base Oils of
international standards
5.Produces over 300+ grades of Lubes, Specialities and Greases

Weaknesses
1.Legal issues
2.Employee management
3.Human right issues, rehabilitation issues
4.Environmental hazards from wastes

Opportunities
1.Increasing fuel/oil prices
2.Increasing natural gas market
3.More oil well discoveries
4.Expand export market

Threats
1.Government regulations
2.High Competition from other players
 index

Sl.no. contents
1 introduction
2 Difference between public and private sector enterprise
3 Role of public sector enterprise for economic
developement
4 History of hisdustan petroleum corporation limited
5 Manufacturing units and main products of hpcl
6 Swot analysis of hpcl
7 conclusion
8 bibliography
 ACKNOWLEDGEMENT

I would like to express my special thanks of

gratitude to my Economic teachers, to the HOD of
commerce department, Subhimal Ghosh Dastidar
well as our principal, Dr Bhakta Sundar Sharma
who gave me the golden opportunity to do this
wonderful project on the topic "PUBLIC SECTOR
ENTERPRISE", which also helped me in doing a lot
of Research and I came to know about so many
new things I am really thankful to them.

Secondly I would also like to thank my parents and

friends who helped me a lot in finalizing this
project within the limited time frame.
 PUBLIC
SECTOR
ENTERPRISE
 Conclusion
The poor performance of Public Sector Enterprises (PSEs) in the 1980s made reform
increasingly urgent in the context of the broader strategy of liberalization of the
economy to deal with the perceived weaknesses of India’s development strategy in
general and PSEs in particular. In this context, this paper tries to analyze the
performance of Central Public Sector Enterprises (CPSE) against the backdrop of
liberalization measures introduced in the 1990s and afterward. The paper makes an
assessment on the basis of some selected indicators for the period of 1980-81 to 2008-
09. The findings suggest that the PSEs’ performance was better in all the indicators
in the post-liberalization regime compared to the pre-reform period.
 BIBLIOGRAPHY
I have taken this information from:

 www.google.com
 www.wikipedia.com