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					Vol : 4, No : 6                 Editor :   R.K.Mishra                 Managing Editor :   K.Trivikram                          June, 2008
           Navratna status                        mercial operations. Meeting all the param-      offer (FPO) as the company was a
           The Hindu : 06-05-2008                 eters fixed by the Department of Public         “Navratna” company and the present dis-
The government granted navratna status            Enterprises, SJVN has bagged the most           investment policy does not envisage Gov-
to the Rural Electrification Corporation          coveted title, to make it eligible for en-      ernment equity dilution in Navratnas. The
giving it financial and administrative au-        hanced delegation of powers and freedom         Power Ministry had approached the De-
tonomy.                                           of working. The mini ratna status grants en-    partment of Disinvestment in the Finance
                                                  hanced autonomy and delegation of finan-        Ministry in August, 2007 for approval of the
      BHEL to take over BHPV                      cial powers to the profit-making companies      FPO that could fetch the company nearly
      The Indian Express : 07-05-2008             under certain laid down guidelines and eli-     Rs. 6,000 crore to part finance the expan-
BHEL will take over Bharath Heavy Plates          gibility conditions to make them efficient      sion programme.
and Vessels Limited (BHPV), a central pub-        and competitive.
                                                                                                      Coal Ministr y forms SPV
lic sector Enterprise which has been under
                                                  PSU Staff also prone to Stress:                       Business Standard : 21-05-2008
Board for Industrial and Financial Recon-
struction. The State Government has ex-                       Sur veys                            The Ministry of Coal has formed a Special
tended several concessions for the revival                  The Hindu : 18-05-2008                Purpose Vehicle (SPV) consisting of offi-
of BHPV and they include transfer of title        Contrary to popular belief that employees       cials from its own ministry and public sec-
of land measuring 386.73 acres in posses-         and officials in government and public sec-     tor steel companies including Rashtriya
sion of the BHPV as a gift title deed in          tor undertakings (PSUs) lead a happy life,      Ispat Nigam Ltd and Steel Authority of In-
favour of BHPV and also waiver of regis-          a survey of executives of a major PSU in        dia Ltd with an aim to acquire coking coal
tration and stamp duties. The other con-          Visakhapatnam has proved that a majority        mines abroad preferably Indonesia.
cessions are : waiver of sales tax arrears        of them are prone to stress-related physi-
                                                  cal and mental health disorders. The            SCI Board considers 1:2 bonus
of Rs. 42.16 crore, waiver of nala tax of
                                                  sample consisted of 440 executives, includ-               The Hindu : 21-05-2008
Rs. 43 lakh, waiver of dues towards water
tax, property tax and vacant land tax of Rs.      ing 37 women. It covered junior officers to     Shipping Corporation of India Ltd has
3.96 crore all in the interest of the employ-     executive directors of the company. The         informed the Bombay Stock Exchange that
ees.                                              study found out that employees below 30         the board of directors of the company, at
                                                  years of age were suffering from greater        its meeting held on May 20, has consid-
  Centre may Divest Residual                      anxiety and insomnia compared to those          ered the proposal to issue one bonus share
         stake in VSNL                            who were above 30 years of age. The em-         for every two equity shares held to the
           The Hindu : 08-05-2008                 ployees are young and enthusiastic and          shareholders and it was decided to recom-
                                                  have high aspirations. They find it difficult   mend the proposal to the administrative
The central government is considering di-
                                                  to reach their goals due to continuous          ministry, i.e. Ministry of Shipping, Road
vesting its 26% residual stake in Tata com-
                                                  workload, ambiguity with their job role and     Transport and Highways for their ap-
munications Ltd (formerly VSNL), a deal
                                                  sometimes due to conflict with their job.       proval.
that could fetch the central exchequer
                                                  This results in feelings of hopelessness and
about Rs. 3,650 crore at current market
                                                  leads to severe depression. Those over 40        MSTC in pact with Coal India
prices. The government holds 26.12%                                                                       Business Line : 28-05-2008
stake in Tata Communications Ltd. and             or 50 years of age are low on severe de-
                                                  pression as they are capable of controlling     MSTC Ltd will act as a service provider for
going by the market price the value of the
                                                  their frustrations and anxieties much bet-      Coal India Ltd’s (CIL) e-tendering and
residual stake is a little over Rs. 3,650 crore
                                                  ter due to their job experience and increase    reverse auction services. CIL and MSTC
as the company shares are changing hands
                                                  in age.                                         have recently entered into a firm agreement
at Rs. 491 a share.
                                                                                                  in this regard. CIL is estimated to procure
  SJVN gets Mini-Ratna Status                        Gov t Disinvestment Policy                   equipment, consumables, spare parts and
          The Pioneer : 14-05-2008                   halts NTPC follow-on offer                   others worth approximately Rs 3,400 crore
                                                           Business Line : 20-05-2008             during the first year of e-procurement in
Satluj Jal Vidyut Nigam (SJVN) has been
                                                  The Finance Ministry said that it did not       2008-09. MSTC was selected as service
conferred the prestigious “Mini-Ratna: cat-
                                                  agree to the proposal of divestment of          provider through a competitive bidding pro-
egory-I” status by the Government of In-
                                                  4.75% equity of NTPC, out of Government         cess. As part of its bid to introduce a more
dia. The corporation had earned the dis-
                                                  shareholding, through a follow-on public        transparent and efficient procurement sys-
tinction within four years of going into com-
                                           Spotlight : Central & State Public Enterprises : 4 (6)                                June, 2008

tem, the coal major already entered into             ter. Its sale will be extended to Meerut       third award in public sector manufac-
integrity pacts with its vendors. The initia-        and across the country soon.                   turing category of National Award for Ex-
tive may help avoid delays in large-scale                                                           cellence in Cost Management 2007.
global procurement for all its contracts.         4 Star Health, as a consortium leader, has        The award has been received by Mr.
                                                    bagged the new health insurance
                                                                                                    R.K Goel, Director (Finance) on behalf
                                                    scheme for 50 lakh family members of
                                                                                                    of GAIL. Mr. Prem Chand Gupta, Union
                                                    government employees of Tamil
                                                                                                    Minister for Corporate Affairs, Govern-
                                                    Nadu, its undertakings, corporations
4 Power Grid Corporation of India Lim-              and universities. This scheme will come
                                                                                                    ment of India presented the awards.
  ited has embarked on a major CSR ini-                                                             This is the fourth time in a row that GAIL
                                                    into force by June 3, according to re-
  tiative by adopting six industrial train-                                                         has secured the award for excellence
                                                    lease from the company. The cover
  ing institutes (ITIs) in three states. Three                                                      in cost management.
                                                    granted is for Rs. 2 lakh per family for a
  ITIs will be adopted in the State of Bihar
  and one in each in the States of
                                                    span of four years against specified         4 State Bank of India Ltd reported a
                                                    surgeries and some specified diseases.         48.2% jump in its net profit for 2007-08
  Maharashtra, Madhya Pradesh and
                                                                                                   proposing a 215% dividend for the year
  Rajasthan. The company will bring into
                                                                                                   against 140% paid in 2006-07, accord-
  play its rich pool of experience in power
                                                                                                   ing to Mr. O. P. Bhatt, SBI Chairman.
  engineering to assist in revision of old
  curricula, development of new curricu-          4 Chandigarh Industrial and Tourism              While the net profit for the year touched
                                                    Development Corporation (CITCO)                Rs. 6,729 crore, that for the fourth quar-
  lum to make ITIs market driven, upgrad-
                                                    has earned a profit of Rs 18.35 crore          ter ended March 31, 2008, increased
  ing the skill of instructors, providing
                                                    for the financial year 2007-08. Manag-         by 26.1% to Rs. 1,883 crore. In 2007-
  guest faculty, helping ITI in development
                                                    ing Director of CITCO said that excel-         08, its total business grew by Rs.
  of specification of equipment, ‘on-the-
                                                    lent financial performance is attributed       1,81,000 crore and the incremental
  job’ training/ industrial visits to trainees,
                                                    to the outstanding performance of              business was larger than the total busi-
                                                    CITCO’s flagship Hotel Mountview,              ness of most private sector banks.
4 Steel Authority of India Limited                  which has generated cash profit of Rs
  (SAIL) inked a memorandum of under-               11.19 crore on a turnover of Rs 25.00        4 Rashtriya Ispat Nigam Limited has
                                                                                                   been awarded the Enterprise Excel-
  standing (MoU) with Bharat Earth Mov-             crore. Bir added that the Hotel
                                                                                                   lence Award – 2007, by the Indian In-
  ers Limited (BEML) for the supply of              Shivalikview has witnessed an increase
                                                                                                   stitution of Industrial Engineering. The
  crucial equipment required for the steel          of 13.5% in its turnover to Rs 15.39
                                                                                                   award was judged on its financial
  major’s current operations as well as its         crore during the financial year 2007-08.
                                                                                                   strength, achievements, internal pro-
  ongoing modernisation and expansion               Hotel Parkview with average occupancy
                                                                                                   cesses, innovation and learning and
  programme. The MoU was signed by                  of 88% has also shown good results this
                                                                                                   external customer orientation.
  SAIL Director (Technical) Mr. V. K.               year with turnover at 5.24 crore and
  Gulhati, and BEML Director (Mining &              profit of Rs. 159 lakh. The performance      4 Steel Authority of India Ltd (SAIL)
  Construction), Mr. M. Poongavanam, in             of Chef Lakeview continues to show an          said its net profit for the fourth quarter
  the presence of the Chairman-cum-                 exemplary upward trend both in profits         ended March 2008 increased 24.97%
  Managing Director of BEML, Mr. V. S.              and turnover.                                  to Rs 2,376.76 crore as compared to
  Natrajan, in Bangalore.                                                                          Rs 1,901.88 crore for the correspond-
                                                  4 The Andhra Pradesh Road Transport              ing period last year. The company said
4 Northern Railway has launched a 24-               Corporation Ltd announced a record
                                                                                                   its total income for Q4FY08 grew
  hour helpline in Delhi to address griev-          achievement of an average, daily traf-
                                                                                                   33.37% to Rs 14,168.50 crore as
  ances of passengers. The passengers               fic revenue of Rs. 11.76 crore in the
                                                                                                   against Rs 10,623.83 crore in the same
  can call with their grievances to the fol-        month of April, 2008, up from Rs. 10.32
                                                                                                   period a year ago. SAIL’s profit after tax
  lowing phone lines at the toll free num-          crore in the corresponding month last
                                                                                                   for the year ended March 2008 rose
  ber 1800-11-2511. They can also fax               year. Executive Director Mr. A.
                                                                                                   21.52% to Rs 7,536.78 crore whereas
  their complaints at 23384040 or e-mail            Nageswara Rao said the corporation
                                                                                                   it was Rs 6,202.29 crore last fiscal. Its
  them to                 also excelled in some other parameters.
                                                                                                   FY08 total income jumped 16.63% to
                                                    They include operation of its buses over
4 The postal department is all set to sell          71.80 lakh km in the same month, as
                                                                                                   Rs 41,830.29 crore from Rs 35,865.38
  holy Gangajal (packaged Ganga water)                                                             crore last fiscal.
                                                    against 67.04 km in April last, an occu-
  through the local postman. The Indian
                                                    pational ratio of 75% compared to 70%        4 NTPC has been ranked as No.1 in a
  Postal department has entered into
                                                    in April’07. Also, vehicle productivity        special category the ‘Best Workplaces
  agreement with Garhwal Division De-
                                                    reached an all-time high of 359 km (342        for Large Organisations’ in the country
  velopment Corporation- an Uttarakhand
                                                    km in April’07).                               and as No.8 overall for 2008 by Great
  Government enterprise and would soon
                                                                                                   Places to Work Institute’s India chapter
  sell Ganga water in 500 ml and 100 ml           4 GAIL (India) Limited has once again            in collaboration with the Economic
  bottles costing Rs. 30 and Rs. 11 re-             received the National Award for Excel-
                                                                                                   Times this year according to a company
  spectively, initially in Ghaziabad and            lence in Cost Management from The
                                                                                                   release. This is the largest study in In-
  Noida according to Mr. N.P. Yadav, se-            Institute of Cost and Works Accountants
                                                                                                   dia conducted by GPTWI, the US-based
  nior superintendent of post-offices of            of India. GAIL’s JLPL unit won the sec-
                                                                                                   institute that ranks work places globally.
  Meerut Division. The department would             ond award in public sector - service cat-
                                                                                                   A total of 250 companies have partici-
  get commission on sale of Ganga wa-               egory and Gandhar LPG unit won the
                                       Spotlight : Central & State Public Enterprises : 4 (6)                                June, 2008

   pated in this year’s survey. The compa-    4 Rural Electrification Corporation Ltd            presented a cheque of dividend to Union
   nies represented various sectors of the      (REC) has announced a consolidated               Tourism and Culture Minister Ms.
   booming Indian economy dominated by          net profit of Rs 860.14 crore for the year       Ambika Soni which is the first dividend
   the IT and ITeS segments besides oth-        ended March 31, a growth of 30.27%               since 1998-99. During 2006-07, ITDC
   ers like manufacturing, media, realty        over the previous year. The income of            made a profit of Rs 105.18 crore before
   and FMCG companies. NTPC’s Direc-            REC for the year ended March 31 stood            tax as against Rs 51.57 crore during
   tor (HR) Mr. R.C. Shrivastav and Ex-         at Rs 3,541.25 crore, a growth of                2005-06 which represents a 104% in-
   ecutive Director (HR &PMI) Mr. G. K          23.95% over the previous year. The               crease in profits over previous year.
   Agarwal received the award from CII          board has recommended a dividend of              ITDC made profit despite the closure of
   (Mumbai) chief mentor Mr. Tarun Das.         30% to the shareholders. The govern-             its duty-free shops in major airports ac-
                                                ment on May 5 granted Navratna sta-              cording to a statement. With the
4 South Eastern Coalfields Ltd (SECL)           tus to REC, giving it financial and ad-          privatisation of airports, ITDC presence
  received national safety awards from
                                                ministrative autonomy, to take decisions         in duty-free shop segment has been
  President of India Mrs. Pratibha Patil.
                                                of investing up to Rs. 1,000 crore or 15%        reduced to only Goa airport.
  Awards were received by SECL Chair-
                                                of its net worth independently.
  man & Managing Director, Mr. B.K                                                            4 CCL felicitated Mr. A.K Rath, I.A.S, sec-
  Singh along with other staff of the con-    4 Hindustan Petroleum Corporation                 retary in Union Government. Mr. Rath
  cerned coal mines. The seven SECL,            Ltd (HPCL) announced a standalone               in his earlier capacity as additional sec-
  which received awards are - Kapildhara        net profit of Rs 384.51 crore for the quar-     retary and Financial Advisor in the Min-
  U/G Mine and South Jhimer Colliery for        ter ended March 31, a 30 % decline over         istry of Steel contributed a lot in the
  the year 2004 and 2005; Singhali U/G          the year-ago period. The firm had a net         progress of SAIL, RINL, and Mecon.
  Project Mine for the year 2005;               profit of Rs 549.54 crore in the fourth
  Mahamaya U/G Mine and South Jhimer            quarter of FY’07, HPCL said in a filing       4 Nepa Limited, a Central Public Sector
                                                                                                Enterprise has done it in 3rd consecu-
  Colliery- Runner for the year 2006 for        to the Bombay Stock Exchange. The
                                                                                                tive year in a row. The journey on re-
  various categories. Government of In-         total income rose to Rs 31,788.27 crore
                                                                                                vival path undertaken in 2005-06 has
  dia has been announcing such safety           in the latest quarter, from Rs 22,041.62
                                                                                                picked up momentum and poised to-
  awards since 1983 .                           crore in the corresponding period a
                                                                                                wards its targeted goal of becoming a
                                                year-ago. The board has declared a
4 Hirakhand Bundia Mines of Rampur                                                              profit making unit. The financial results
                                                dividend of 30% on shares of face value
  sub-area in Orient area of the Mahanadi                                                       for 2007-08 have been provisionally
                                                of Rs 10 for 2007-08. For the year ended
  Coalfields Ltd (MCL) has been                                                                 worked out and the pre-audited figures
                                                March 31, HPCL reported a consoli-
  awarded the National Safety Award                                                             vindicate the hard and sincere efforts
                                                dated net profit of Rs 1,364.1 crore, an
  (Mines)-2006 for longest accident free                                                        put in by its employees for continuous
                                                18.51% decline over the year-ago pe-
  mines. The award was given by Presi-                                                          sustained growth over previous years
                                                riod. The firm had a net profit of Rs
  dent Mrs. Pratibha Patil in New Delhi.                                                        after three years of stagnation during
                                                1,674.02 crore in FY’07. The total in-
  On behalf of MCL, Deputy CME/Agent                                                            2002-03 to 2004-05 according to the
                                                come rose to Rs 1,11,626.36 crore in
  Mr. Kumud Bandhu Majhi, and foremen-                                                          company release. NEPA signed MoU
                                                FY’08, from Rs 94,680.63 crore in the
  in-Charge of the mines, Mrinal Kumar                                                          with Government of India during 2007-
                                                previous fiscal. HPCL announced a
  Bhattacharya received the award.                                                              08 after a gap of 13 years. Having dem-
                                                standalone net profit of Rs 1,134.88
                                                                                                onstrated a commendable performance
4 Bank of Baroda Ltd reported a net             crore in the financial year ended March
                                                                                                in terms of production reaching at
  profit of Rs. 1,435.52 crore for the year     31, a 27.77 per cent decline over the
                                                                                                51,400 mt. (2007-08) and sales peak-
  ended March 31, 2008 against Rs.              year-ago period, while the total income
                                                                                                ing at 52,005 mt, the company has
  1,026.47 crore in 2006-07, an increase        rose to Rs 1,05,901.73 crore.
                                                                                                brought in innovative ideas for genera-
  of 39.8%. The net profit for fourth quar-
                                              4 The State Bank of India (SBI), Kerala           tion of internal resources to overcome
  ter was up 12.5% at Rs. 276.44 crore
                                                circle, achieved a total business of            financial crisis coupled with cost-cutting
  against Rs. 245.66 crore. The bank has
                                                Rs.20,000 crore during the just con-            measures and a motivated environment
  declared a dividend of 80% against 60%
                                                cluded financial year. Aggregate depos-         under the dynamic leadership of Briga-
  in 2006-07. Interest income was higher
                                                its grew by 16% to Rs.12,196 crore and          dier Surinder Kumar Mutreja, Chair-
  by Rs. 2,809.38 crore (31.2%) at Rs.
                                                advances by 29% to Rs.8,840 crore as            man and Managing Director contribut-
  11,813.47 crore against Rs. 9,004.09
                                                at the end of March 2008. The growth            ing a modest operating profit of Rs. 0.52
                                                in domestic deposits is 36%. The circle         crore in the current year (2007-08) for
4 Within a week after it recorded the high-     recorded a net profit of Rs.241 crore.          the first time since 2001-02.
  est-ever revenue collection in a day, the     There was a growth of nearly 70% in
  Karnataka State Road Transport Cor-           home loan.                                    4 A government panel recommended a
                                                                                                hefty pay hike for over 2.5 lakh officers
  poration (KSRTC) broke the record
                                              4 The Indian Tourism Development                  in Central Public Sector Enterprises
  once again by earning traffic revenue
                                                Corporation (ITDC) recorded profit af-          (CPSEs) whose chiefs may get up to
  of Rs. 595.41 lakh. On May 12, the cor-
                                                ter nine years and has declared a divi-         Rs 1 lakh a month, along with stock
  poration had registered a revenue of Rs.
                                                dend of Rs 13.50 crore for the year             options and productivity rewards. The
  582.97 lakh. Managing Director Mr. A.P.
                                                2006-07. The amount is 20% on the               new wage structure that represents a
  Joshi congratulated the workforce of
                                                paid-up capital. ITDC chairman and              25 to 45% hike offers Employees Stock
                                                managing director Mr. Parvez Dewan              Option Scheme (ESOP), variable pay
                                          Spotlight : Central & State Public Enterprises : 4 (6)                                      June, 2008

  and risk rewards and will be imple-
  mented retrospectively from January 1,                             MOVERS & LEADERS – A LIMELIGHT
  2007. Under the proposed dispensation,         * Mr. M.D. Mallya,                                 * Mr. Naresh Chandra Agarwal,
  the CPSEs will be divided into five cat-          C & MD,                                            Director,
  egories — A-plus, A, B, C and D —                 Bank of Baroda.                                    Hindustan Aeronautics Ltd,
  depending upon the turnover, man-                                                                    Bangalore.
  power and geographical spread.
                                                 * Mr. R.S. Sharma,
4 The salient features of the recommen-             C & MD,                                         * Mr. K. Mohan Rao,
  dations are:                                      National Thermal Power                             Director,
                                                    Corporation Ltd,                                   Khadi and Village Industries Commission,
  •   Top category C&MDs will draw a
                                                    New Delhi.                                         Union Ministry of Micro, Small and
      fixed basic salary of Rs. 1 lakh per
                                                                                                       Medium Enterprises,
                                                 * Mr. T.K. Alex,                                      Andhra Pradesh.
  •   C&MDs basic will range from Rs                Director,
      55,000 to Rs 1 lakh per month.                ISRO Satellite Centre,                          * Mr. S.K. Chaudhary,
  •   Annual increment of 2 to 4 %.                 Bangalore.                                         Member (Operations),
  •   Performance linked variable pay,                                                                 State Electricity Board,
      ranging from 40 to 200% of basic           * Mr. K. Ranganath,                                   Shimla.
      pay.                                          C & MD,
  •   Basic pay of directors will range from        Kudremukh Iron Ore Ltd,                         * Mr. B. Surender Mohan,
      Rs 50,000 to Rs 80,000 per month.             Bangalore.                                         Director,
                                                                                                       Neyveli Lignite Corporation Ltd,
  •   Basic of below board level execu-
      tives will range from Rs 11,500 to Rs      * Prof. V. Venkata Ramana,                            Tamil Nadu.
      70,000.                                       Director,
                                                    State Bank of Hyderabad,                        * Mr. S.P. Ravindran,
  •   Risk pay for executives ranging from
                                                    Hyderabad.                                         General Manager (Technology Planning),
      Rs 1,100 to Rs 25,000 per month for
      C&MDs of A-plus CPSEs. No risk
                                                 * Mr. Anil Girotra,
      pay for loss-making enterprises.
                                                    Executive Director,                             * Mr. G. Raghavendra Rao,
  •   Board of each CPSE, subject to ap-            Andhra Bank,                                       General Manager (Electronic
      proval by the Union Cabinet, can for-         Hyderabad.                                         Warfare & Avionics),
      mulate its own ESOP.                                                                             Bangalore.
  •     Allowances, perks of executives                                 (*Appointments in the month of May 2008)
      could go up to 50% of basic exclud-
      ing HRA, retirement benefits.                                                                 capital adequacy. The provisioning and risk-
                                                     •   Sick CPSEs should be allowed pay
  •   HRA rates recommended at 30%,                                                                 weight requirements have been tightened
                                                         revision (without risk or variable
      20% and 10% of basic pay. Retire-                                                             in a timely manner by the RBI to supple-
                                                         pay) once they make cash profits.
      ment benefit at 30% of basic.                                                                 ment monetary measures, in order to mod-
                                                                                                    erate early signs of overheating,”
  •   City Compensatory Allowance to be
      removed.                                                                                                                     Mr. Y.V. Reddy,
  •   Upper ceiling on gratuity to be re-        “India has a bank-dominated financial sec-                                        RBI Governor.
      moved.                                     tor, and banks in the country have a higher

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       From :
       Dr. K.Trivikram,
       Sr. Faculty Member,
       Institute of Public Enterprise,
       O. U. Campus, Hyderabad - 500 007.
       Tel : 27095480 , Fax : 27095478
       E-mail :

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