industrial sickness india

8/13/2019 Industrial Sickness India

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Industrial Sickness India

Industrial sickness is one of the major problems of Indian industrial sector. It creates

problem of wasting financial resources, puts a burden on banks and also enhances thepublic expenditure.

In 1985, Tiwari ommittee was appointed to probe into the problems of industrial

sickness. !n the basis of its recommendations, "ick Industrial ompanies #ct $"I#%was proposed and later on in &an 198', a statutor( institution named )oard forIndustrial and *inancial +econstruction $)I*+% was setup.

-rimar( responsibilit( for tackling problems of industrial sickness is ested in it.Navratnas of India

/aratnas was the tide gien originall( to nine -ublic "ector 0nterprises or -"0,

identified b( the oernment of India in 199' as its crown jewels or the mostprestigious -"0s, which allowed them greater autonom( to compete in the global

market.

The number of -"0s haing naratna status has now been raised to 18, the most

recent addition being oal India 2imited.

Criterion of Selection

/aratna status is conferred b( 3epartment of -ublic 0nterprises. To be 4ualified as a

/aratna, the compan( must obtain a score of 6 $of the total 166% .The score isbased on six parameters which include net profit to net worth, total manpower cost tototal cost of production or cost of serices, -)3IT $-rofit )efore 3epreciation, Interest

and Taxes% to capital emplo(ed, -)3IT to turnoer,. 0-" $0arning -er "hare% andintersectoral performance.

#dditionall(, a compan( must first be a miniratna and must hae four independent

directors on its board before it can be made a /aaratna.

The 7/aaratna7 status offers a compan( enhanced financial and operational autonom(

and empowers it to inest up to +s.1666 cr or 15 of their net worth on a singleproject without seeking goernment approal.

In a (ear, these companies can spend up to 6 of their net worth not exceeding+s.1666 cr. The( will also hae the freedom to enter joint entures, form alliances and

float subsidiaries abroad.

List of Navratnas India:

1. )harat 0lectronics 2imited $)02%

:. )harat ;ea( 0lectricals 2imited $);02%


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. )harat -etroleum orporation 2imited $)-2%


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conditions. In :66:, there were o. 2imited

. )harat 3(namics 2imited


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1:. ontainer orporation of India 2imited

1. 3redging orporation of India 2imited

1 -etrochemicals 2imited

:8. =ishra 3hatu /igam 2imited

:9. ==T 2imited


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6. ="T 2imited

1. /ational *ertiliBers 2imited

:. /e(eli 2ignite orporation

. /;- 2imited


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. *erro "crap /igam 2imited

industrial sickness india

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