The public sector is a significant presence in the Indian economy. The number of public sector companies has not grown strongly in recent years.
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Year Number Sales Net Worth Net Profit
(Rs.bln) (Rs.bln) (Rs.bln)
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1988-89 226 931 417 30
1989-90 233 1061 501 38
1990-91 236 1187 594 23
1991-92 237 1339 642 24
1992-93 239 1467 739 33
1993-94 240 1582 812 44
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Currently, the oil and telecommunications sectors are dominated by public sector monopolies, which account for the bulk of the profits shown above.
From 1992 onwards, the government has followed a policy of partial disinvestment of ownership of some public sector companies. So far, shares of 49 public sector companies have been partly sold to the public. These companies are some of the biggest companies listed on the BSE, and their market capitalisation is roughly Rs.1.3 trillion, or one-fifth the market capitalisation of the BSE.
The Union Finance Ministry in new guidelines issued in June 1995, has instructed all the public sector companies that shares offered to the employees should be at the same price as that offered to the public. Further, a maximum of 5% of the issue should be reserved for the employees.
Centre for Monitoring Indian Economy, Bombay
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Last updated: August 1995.