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What are the Problems Faced by Public Sector Enterprises?


Grag 16th Oct, 2021
Answers (2)
Manidipa Kundu Student Expert 16th Oct, 2021

hi,

see the problems may differs as per the companies work culture and policy. ntpc, indian oil, power grid, bhel , coal india etc are comes under public sectors undertakings. in some of the cases the work location can be in remote places and you have to relocate there. some major issues faced by psu's India is as follows:

i) Endowment Constraints

(ii) Under-Utilisation of Capacity

(iii) Absence of Rational Pricing

(iv) Operational and Managerial Inadequacies

(v) Government Interference

(vi) Heavy Social Costs

(vii) Technological Gap

Nitin Mereddy 16th Oct, 2021

Due to several mistakes, flaws, and omissions in project planning, many of the public enterprises take longer time to complete, which results in increasing the cost of the project and considerable delay in their completion. For instance, the commissioning of the Tomboy project delayed by 3 years, Barony Refinery by 2 years and Antibiotic Factory at Hardware by 1 year. To overcome this drawback, adequate feasibility studies and detailed planning should be undertaken.

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