Economic Final Isc Project
Economic Final Isc Project
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
Raises money Public Revenue like tax, duty, Issuing shares and debentures
from penalty etc. or by taking loan
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.
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
Guru Gobind Singh Refinery: 9 MMT at Bathinda, Punjab (HPCL and Mittal
Energy each have a 49% stake).
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.
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
www.google.com
www.wikipedia.com