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Presented by

Vikas R. Waghmare 57

Under the guidance of prof. Ghanachari

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2 binding contract typically must contain mutual consideration²
legally enforceable obligations of the parties and its formation
must take place free of the so-called real defenses to contract
formation (fraud, duress, lack of age or mental capacity, etc).
  
  
The term is used to refer to companies in which the government
(either the Union Government or State governments, or both)
owned a majority (51% or more) of the company equity.
2 Public Sector Undertaking is a corporation in the public sector
in India, where management control of the company rests
with the Government; it can be Central Government or the State
Governments
 Ú U between Government and PSUs

Úemorandum of Understanding (ÚoU) is a mutually negotiated

agreement between the management of PSUs and the
government for setting annual performance targets for PSUs.

ÚoU is meant to measure the Performance of Úanagement of

PSU at the end of the year in an objective and transparent
manner.

The strengthening of existing system of monitoring PSUs through

ÚoU is an important element of the present policy of the
Government.
The disinvestment= 
of government equity in PSUs began in
1991-92 when the minority shareholding of the Central
Government in 30 individual PSUs sold to financial Institutions.
The Indian government adopted the disinvestment route mainly
because of the ineptness of the state-owned enterprises as
compared to the privately-owned firms.

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è sale of minority shareholding in PSUs,
è sale of majority shareholding of one PSU to another PSU,
è strategic sale,
è other related transactions and
v =uring FY01-FY04, PSUs were disinvested mainly through
strategic sale and other related transactions, however post FY04,
no strategic sales were carried out by the PSUs.

v =uring FY04, the actual receipts of disinvestments rose by

364.38% as compared with the previous year.

v The total receipts in FY04 stood at Rs 155.47 bn, ahead of the

budgeted mark of Rs 145 bn. This increase in receipt was majorly
due to disinvestments made through sale of minority shareholding
in the PSUs.

v The total receipts of all actual disinvestments from FY01 to

FY10 were Rs 392 bn, 55% of which came from sale of minority
shareholding in central PSUs and 16% from sale of residual
shareholding in disinvested central PSUs. =uring FY09, there
has been no disinvestment transaction.
 '
 
 
Indian il Corporation Limited
NTPC Limited
il & Natural Gas Corporation Limited
Steel 2uthority of India Limited
!:
Bharat Electronics Limited
Bharat Heavy Electricals Limited
Bharat Petroleum Corporation Limited
Coal India Limited
G2IL (India) Limited
Hindustan 2eronautics Limited
Hindustan Petroleum Corporation Limited
Úahanagar Telephone Nigam Limited
National 2luminium Company Limited
NÚ=C Limited
il India Limited
h
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