PERFORMANCE ANALYSIS OF CENTRAL PUBLIC SECTOR ENTERPRISES (CPSES) IN INDIA

Abstract

It has been the long standing practice to evaluate the performance of business enterprises based on financial measures. But a change in evaluation methodology has emerged where the researchers and social scientists have vehemently opposed the practice of concentrating on financial parameters only for performance evaluation and they have recommended for the use of other relevant aspects for this purpose. This new evaluation ideology is appropriate for enterprises like Public Sector Enterprises (PSEs) which have not been established solely for profit motive. Therefore, in order to examine the performance of an enterprise especially in case of public sector enterprises in India, both financial and social performance measures have been considered. In this paper, an attempt has been made to appraise and critically explain the performance of the Central Public Sector Enterprises (CPSEs) in India through different parameters like Profitability, Contribution to Central Exchequer, Internal Resource Generation,Value Addition, Employment Generation etc. with the help of relevant data for the study period from 1999-2000 to 2007-08.