SELECT SLIDES OF CLASSES 3 & 4

ECO (SV) – PART II (12 slides)

INDIAN ECONOMY

(Slides to be read along with class notes)Clarifications be sent to sanjiv.verma@ymail.com

(For limited circulation only)

Favorable

demographic

dividends of India

300 million youth

(18-29 yrs~ 10% of

popn)

Aging global population… but for India

Inverted Age Profile (age 65 yrs and

above)

In

� Selling residual shares in privatized PSUs (BALCO 49% and HZL 29%)

� Liquidation of SUUTI (Axis Bank 21%, ITC 12%, L&T 8%)

� Higher dividend pay out by PSU ( Coal India 290%)

� Buy Back of Shares

� Cross Equity holding (ONGC/OIL to buy 10% shares in IOC)

� IPO/FPO/OFS/QIB in profitable PSUs

Alternatives for disinvestmentAlternatives for disinvestmentAlternatives for disinvestmentAlternatives for disinvestment

Maharatna PSUs (7) up to Mar 13

PSUs with average “Sales” of Rs 25,000 crore, “Net worth” Rs 15,000 crore, “Profits” of Rs 5,000 crore in the last 3 years. (Freedom to take investment decisions up to Rs 5,000 crore)

� Oil & Natural Gas Commission ltd (ONGC)

� Indian Oil Corporation Ltd (IOC)

� National Thermal Power Corporation Ltd (NTPC)

� Coal India Ltd (CIL)

� Steel Authority of India Ltd (SAIL)

� Bharat Heavy Electricals Ltd (BHEL)

� Gas Authority of India Ltd (GAIL)

13

�ONGC

�NTPC

�CIL

�NMDC

�BHEL

�IOC

PROFITABLE PSUs LOSS MAKING PSUs

oBSNL

oAIR INDIA

oMTNL

oHINDUSTAN

CABLES

oHINDUSTAN

PHOTO FILMS

oFCI