Undertakings'

c. P.'U. No. 117

.. r~

. , COMMITTEE Or~PUBLIC UNDERTAKINGs'

, ... (1980-81) ", ~ , (SEVENTH LOK SABHA) t .. • to" " . TENUI REPORT

Action'taken by GovernmtDt. . on· the 'recommen- datioDs contained in the TweatY:.eigh;th Report of, the COmniittee 08 Public U.ndertakings (Sixth Lok Sabha) . ON PCB.LIC UNDERtAKlNGS...:...DE-,AYS IN COMMEN- CEMENT Of PRODUCTION BUSINESS, UNDBR UTILISATION OF CAPACITY AND .RELATED. ··MAlTERS . MINISTRY OF FINANCE (Bur~au of Public Enterprises) ., .Presenzed to Lok ',SafJha and \ " " '. . Laid in Rajya Sabho.' on ~_ . \

Lore SABHA SECRF.T~RIA T . NS'W 'DELHI February, r,ar~Pha{pna, ~9Dz .( Sak4l) ,. . .. Priu.: Rs. 2·45 mrliUGENOA TO TEi\JTH .~EPO·;lT Of Q)i~~lIIT2E Q1:l. PUBl-l~._UW_EJ{r &~~j~ $ ..(~.EYF-Nr rI.J.. y!< .•Sf\F3i~)

~ !:.~-/}.g. fSF.. Re~9_ 3 1 from analogues analogus belC'lVi

4 1 .. from faC~5 facets below i~ J"6 . 3 from 1'\):'). 11 l\b. 11 it, ,:.. below (viii) (vii)

24 5 l\b. 11 l\b. 11 ( Vl. i i) (i)

4 i\k:". 11 J-b. 11 (vii) (viii) l, 26 4 from NagaI Na n9al below ( .:::0 1 umr. 3) CONTENTS

PAOBI

COMPOSITION O' THB CoMMITTEE (iii)

COMPOSITION OF SUB·COYMITTIIB ON ACTION TAKEN (v)

INTRODUCTION (vii)

CKAPTER Report

CHAPTER II Recommendations that have been accepted by GovernlDftlt.

CHAPTER III R~on.: .. ,. ... ~tions which ~e Co!l'mittee do not desire to (",;nul. 12 o:w 01 Govemment I repJael . . . '. !IS

CHAPTER IV RecolDmendations in respect of which replies of Government have not been accepted by the Committee . • .• 114

CHAPTER V Recommendationa in respect of which final replies of Governnlent are .till awaited • • • . . • •. 8,5

Statement indicating the meuurea taken by the enterprites for improving their capacity utilisation. . . .. 26

II Steps taken by the entcrpriles to remove tbe .ystem deficencia, pointed out by Audit: . • . . .• 4S

III Analysis of action taken by Government on the recommendations CODtained in Twentyooefthth Report or the Committee on Public Undertaking. (Sixth LOk Sabha). 50 COMMITTEE ON' PUBLIC UNDERTAKINGS (1980-81)

Shri Bansi Lal

Members

2. Shri Gulam Nabi Azad 3. S.a-'~i Niren Ghosh 4. SM Harikesh Bahadur 5. Jhri Arif Mohammad Khan 6. bhri S. M. Krishna 7. Shrimati Geeta Mukherjee 8. Shri B. K. Nair 9. Shri Rameshwar Neekhra 10 ·Shri Hiralal R. Parmar 11. Shri Darur Pullaiah 12. Sliri Nagina Rai 13. Shri ~. Ramamurthy 14. Shri Ravindra Varma 15. Shri Chandradeo Prasad Verma 16. Shri R. Ramakrishnan 17. S'hri R. R. Morarka 18. Shri Shrikant Verma 19. Shr! Ramanand Yadav 20. Shri Harisinh Bhagubava Mahida 21. Shri Swami Dinesh Chandra 22. Shri Sunder Singh Bhandari.

. ._-, .... _------_ ..... ~". - .--...- .. - "'Elected w.e.f. 28-11-1980 in the vacancy caused by appointment of Shri P.A. Sangma as Deputy Minister.

(iii) SIDCRETAlUAT

1. Shri H. G. Paranjpe-Joint Secretary 2. Shri T. R. Krishnamachari-Chief Financial Committee Officer. 3. S'hri S. C. Gupta-Sen.ior FinanC'ia1 Committee Officer. SUB-COMMITTEE ON ACTION TAKEN OF THE COMMITTmE ON PUBLIC UNDERTAKINGS (1980-81)

1. Shri Bansi Lal-Chairman ~. S"ui R. R. Morarka-Convener 3. Shd Gulam' Nabi Azad 4. Shri Swami Dinesh Chandra 5. Shri S. M. Krishna 6 Smt. Geeta Mukherjee 7. Shri B. K. Nair

(v] INTRODUCTION

I, the Chairman, Committee on Publi'c Undertakings having been authorised by the Committee to submit the Report on their behalf, present this 10th Report on Action Taken by Government on th.e recommendations contamed in the 28th Report of the Committee on Public Undertakings (Sixth Lok Sabha) on PubUc Undertak- ings-Delays in Commencement of Production/Business, Under- utilisation of Capacity and related matters.

2. The 28th Report Of the Committee on Public Undertakings was presented to Lok Sabha on 9 April, 1979. Replies of Govern- ment. to all the recommendations were received on 24 December, 1980. The replies of Government were considered by the Action Taken Sub-Committee of the Committee' on Public Undertakings on 23 February, 1981. The Report was finally adopted by the Committee on Public Undertakinglli on 26 February 1981.

3. Analysi,; of Action Taken by Government on recommendations contained i'n the 28th Report of Committee is given at Appendix-III.

NEW DELHI; BANS! LAL February .28, 1981 Chairman, Phalguna 9,' 1902 (Saka)- Committee on Public Undertakings.

(vii) CHAPTER I REPORT This Report of the Committee deals with the action taken by Government on the recommendations contained in the Twenty Ei,?-'h.;h Report (Sixth Lok Sabha) of the Committee on Public UnDertakings on 'Public Undertakings-delays in commencement of Production/business, under-utilisation of capacity and related matters'.

2. In paragraphs 4.8 and 4.14 of the Twenty Eighth Report (Sixth Lok Sabha) (S1. Nos. 6 and 10) the Committee had pointed out how it had become necessary to have more than one independent agency to examine the working of all enterprises and recommended that there should be a Parliamentary Committee on Public Under- takings for each group of enterprises organtsed in the manner indicated by them in order to facilitate better and more frequent era- mination of the undertakings. The Government in their reply have felt that the recom'llenda- tion should be appropriately a matter for consideration by the Speaker, Lok Sabha. In the circumstances the matter is not covered in this Report on :action taken by Government and the reply to recommendations at S. Nos. 6 and 10 has not been categorised. 3. Action Taken notes have been received from Government in respect of all the other 16 recommendations contained in the Report. These have been categorised as follows:- (i) Recommendations/bbservatlions . that have been accepted by Government Serial Nos. I, 2, 3, 4, 5, 7, 8, 11 (ii-vii). (ii) Recommenda1lions/bbservations which the Comm.ittee do not desire to pursue in 'View of Government's replies. Serial No.9 (iii) R~m.endatiOfl.B/observations in respect of which gOv- ernments replies have not been accepted by the Com- mlittee. ',. Serial No. 11 (i). (iv) Recommendationsjbbservations in respect Of which final repliles of government are still awaited. Serial No. 11 (viii). 2 4. The Committee will now deal with the action taken by Gov- ernment on some of their recommendations. '

A. Systems Deficiencies brought qut in Audit Reports

Recommendation (Serial No.5. Paragraph 4.7) 5. The Committee observed that there were several systems deficiencies brought out in the C & AG's Report (Commercial)-1977 Part II-Miscellaneous 'ropics of Interest. 11 companies mentioned in the Report suffered from combination of most of the d.eficiencies. The Committee wanted to know precisely the steps tak~ all these years to remove the deficiencies ,in these cases.

6. In their reply the Government have stated that the concerned enterprises have been consulted and it is noted from the replies gi"~l1 by them that a number of defidencies pointed out by the C&AG have since been rectified by them. A statement showilig .• _ fo'rlncipal deficiencies ~d the steps taken by the concerned enterprises has also been furnished (Appendix II). 1. The Committee woold suggest that the statement showing steps taken by the Public Undertakings to remove the systems defi- deDeies pointed out in the report of the C&AG may be got vetted Ity awlit and fur,ther improvements, as may be necessary made in tire light of 'thesuggcstions of audit. 'They also desire that the Boards of Public Undertakings should have a periodic examination of the system deficiencies which ar'e pointed out by the C&AG for taking steps to remove the deficiell«!ies. The Committee have else- where suggested that these deficiencies and the action taken by the public undertakings thereon should be considered in the performance Review Meetings held by the Ministries/Departments eoDtrolling the public undertakings. B. Accurate Data on Public Undertakings

Reeommendation (Sl. No.8, Paragraph 4.12)

8. The Committee pointed out that the figures of profits/losses of public enterprises brought out by the Bureau of Public Enter- prisesin its annual report did not tally with those of audited accounts. The data regarding consumption of raw material, employment of Casual Workers and production were not invariably aecura te., '

9. In their reply the Government have stated that it was true that in il/rtain cases there was variance betwee!l profit or loss 3

figures of certain companies as reported in BPE's Annual Rep6rts and corresponding figures shown in the annual reports of such companies. The reasons for such variances were that to ensure submission of BPE's report alongwith budget documents to' Parliament a tim£' bound programme is required to be followed. As such BPE incor· porates provisional figures in respect of those companies whose annual accounts could not be adopted before the report is sent to the press. Further, in the annual reports of some companies the net profit or loss are computed after appropriation to certain reo serves-statutory or otherwise whereas in BPE's report such figures are shown before such appropriations.

1~. The Annual Report of the Bureau. of Public Enterprises eon- tains figures of prefit loss and data in respect of various.peets of the working of public undel"takings both for the previous year as well as for the yer under review. loS explained by the BPE, it 'Ilight not perhaps be possible for th~.d to include the data for the year under review as per the auditedaccoUJits, invariobly in the ease of all undertakings. The Committee would, however, sugges. that earliest opportunity shot J 1 be taken to correct the provisional data wherever necessary and ihat the data for the previOUS year should invariably be given in the Annual Report as per autl'ted accounts with a suitable footnote to indicate that these are reviRed data. C. Reorganisation Of Bureau of Public Enterprises

Recommendation (Serial No.9, Paragraph 4.13) 11. The Committee had suggested that the public sector enterprises should be grouped, based on their chara,cteristlcs and nature of Business and for each group of enterprises there should be a set up to oversee the functioning from very close quarters. The BPE should also be reorganised as far as possible on the above lines. 12. In their reply the Government have stated that at present the Bureau was organised' into six constituent divisions viz. (i) Administration and Coordination, (ii) Construction, (iii) Finance, (iv) I & R, (v) Management and (vi) Production. The Bureau had on its role specialists in the field of mechanical engineering, metal- lu"tfY, mining, materials management, chemical engineering, cost- ulg, finance and management etc. As organised at present the Bureau was able to undertake multidisciplinary scrutiny of per· formance of public .sector enterprises and investment appraisal. As such reorganisation of the Bureau on the basis of groups of analogues enterpt'ises is not considered necessary. 4 13. One of the im.portant functions of the BPE is to coordinate the work relating to the examination of public UDdertaldDas by ParliamentfU'ly Committees. Thus, any reorganisation of the Bureau would naturally be dictated by the needs of accountability to Par- liament of the public undertakings. The Committee note from the reply of the government that the present organisation of the BPE on fuhctional basis makes for ,a multi-disciplinary scrutiny of performance of public sector enterprises and investmeat appraisal. The Committee's suggestion for a sectoral reorganisation of the Bureau was made in the context of their suggestions to have more than one Committee on Public Undertakings. As and when a challee takes place in the Committee system, suitable reorganisation of the BPE would be necessary until then the status quo may be maintained.

D. White paper on PubLic Undertakings

Recommendation [Serial No. ll(i), Paragraph 4.15]

14. The Conunittee recommended that Government should bring out white paper critically appraising the functioning of the public undertakings and present it to Parliament within a period of si" months indicating the programme separately for manufacturing and non-manuf~cturing enterprises. This should clearly set out the measures proposed to remove the deficiencies under a time bound programme. , 15. In their reply the Government have stated that an appraisal" :Jf different facts of the performance of public sector enterprises alongwith sectoral analysis is presented annually to the Parliament by the Bureau of Public Enterprises. The Report, inter alia, covers (a) Investments and Returns, (b) Profitability, (c) Capacity Utili- sation, (d) Generation of Internal Resources, (e) Management of Inventories and Working Capital, (f) Creation of Employment op- portwrities, (g) Plant Maintenance, (h) Development of Ancillary Industries, (i) Pricing Policies, (j) Management Development and (k) Training, etc. In view of this position, a separate White Paper on this subject is not considered necessary.

16. The Committee are 1U1able to aCCiept the reply furnished by the GovernmAnt. Besides the Annual Report brought out by the Burea_ '11,[ Public Entel'lprises, it is DeiCessary to have a periodical stock-taUng through white papers presented to Parliament on the lines of the practice in the U.K. 5

E. Monitoring and Appraisal Recommendation [Serial No: l1(ii), Paragraph 4.15].

17. The Committee recommended that the Bureau of Pu.blic :enterprises should forthwith evolve an effective monitoring and appraisal system in respect of .service enterprises, trading enterprises etc. 18. In their reply the Government have stated. that the Bureau 81\d the Administrative Ministries have developed Management Infu.1nation System under which the public sector enterprises are fpquired to furnish periodical (monthly, quarterly and annual) h ... ,,~ts rela.ting to production, sales, profits, etc., to the Adminis- trativd Ministries as well as the Planning Commission and the Bureau. Based on these reports, the performance of the enterprises is monitored and appraised by the administrative Ministries with special emphasis on the solution of problems faced. by the companies. In addition, the Bureau SUbmits quarterly reports to the Government indicating the performance in aggregate as well as individually. of public sector enterprises. In view of this position no further action seems to be called for.

i9. The Committee would lite ~fIo point out that the reports required to be furnished by the public enterpri!IeR under the integrated re4Portlng system introcluced in March 1975 had heen designed to obtain infonnation from production enterprises. These were not applicable in case of financial, trading, consultancy and other service oriented enterprises. The Committee have not been informed of steps taken by the BPE to evolve an effective monitoring and appraisal system in respect of such enterprises. They would, therefore reiterate that the Bureau should forthwith evolve effective monitoring and appraisal system in respect of undertakincs other than produdi~ enterprises. ReconlDlendation [Serial· No. ll(iv), Paragraph 4.15]

20. The Committee suggested that the p~rformance appraisal reviews to be taken periodically should cover the deficiencies in the system of control as brought out in the reports of the C&AG. 21. In their reply the GoveI'nment have stated that the performance appraisal by the Bureau is carried out much in advance of the subm~ssion of Reports by the Comptroller and Auditor General. However, efforts are made to cover the areas/deficiencies pointed out by the C&AG, at the time of preparation of subsequent apprai- sala by the Bureau. 6

22. The Committee suggest that the systems deficiencies pointed by the C&AG should ~ot only be covered in the appraisals by the Bureau but should also be considered in the 'Performance Review Meetings held by the administrative MinistriesjDepal"tments in association with the representatives of the Bureau and the Planning Commission with a view to giviug suitable guidelines to the undertakings to remove the deficiencies.

F: Annual Reports of the Bureau of Public Enterprises and the Ministries

Recommendation [Serial No. ll(vi), Paralra~h 4.15] 23. The Committee Ifecommended that any reviews either by the Bureau of Public Enterprises or by the Ministries as are published in their Annual Reports should clearly relate the achievements of public undertakings in different sectors to the plan anticipations both in regard to generation of internal resource>,) and the value added. The gaps in achievement should be highlighted to inform the wider public who are the real owners of these enterprises.

24. In their reply the Government have stated that Sector-wise figures of value added are not provided in the Annual Plans or Five Yea.r Plans prepared by the Planning Commission. In the absence of these, it is not possible to compare the actual value added by the public enterprises with the Plan estimates. It is, however, feasible to compare annual Plan estimates of intern\il resource generation with the actuals. 25. The Committee understand that specific annual plan targets of production in physical terms or in monetary terms are fixed for each undertaking jointly by the Planning Commission and the Mhlistries concerned; The report of the BPE and the Annual Reports of t •• e administrative Ministries should, therefore, clearly relate the achievement! "'f each public undertaking to such plan targets. The reasons for s.·.gni6cant variations and the corrective measures taken should also be highlighted in the reports for the information of Parliament and. the public. These should be in addition to bringing out the achievements vis-a-vis Plan anticipations in respect of generation of internal resources as well as of investments. G. Career Development of Executh,es to be related to achievements: Recol1lQlendation [Serial No. 11 (viii) Paragraph 4.15]

26. The Committee recommended that the BPE should evolve a system of incentives and dis-incentives so that all concerned espe- 7 cially the management of the public sector enterprises would, acquire a st.ake .in the' success of the public sector. The career advancement of Executives should be related to the performance of the 'units under them.

27. In their reply the Government have not indicated specifically any action taken in this regard.

28. The Committee regret that the reply of the Government does BOt COWl' the specific suggestion made by them, The aetion in this regard . should bet expedited.

H. RoZe of Government Directors on the Boards of Public Enter- p-rises:

Recommendation (Serial No. U(viii), 'Paragraph 4.(9)

29. The Committee suggested that the Government representatives on the Boards of Management should be held personally responsible for any serious l""''Se and mal-functioning of the enter- ~rises, unless they draw p< Inted attention of the Secretary and the Minister concerned without any lapse of time. In fact they should effectively represent the Government as a whole on the Board but unfortunately their presence in the Board 1;1as so far made no difference. • 30. In their reply the Government have stated the views of the Government on the role of Government Directors are being co~ muni~ated in reply to the recommendations made by the Committee in their 20th Report on 'Structure of Boatds of Management of Public Enterprises',. 31. The .sPecific sugeestion made by the Committee that Ctthe Government representatives on the Boards of Management. should be held personally responsible for any serious lapse and mal-function. ing of the enterpri!res unJJess they draw pointed attention of. thel Secretary and the Minister concerned without any laps of time;" has not been included in the 20th Report; The Committee would, therefore, await a specific reply in this regard. CHAPTER r~ RECOMMENDATIONS THAT HAVE BEEN ACCEPTED BY GOVERNMENT Recommendation [SI. No.1 Paragraph 2.14]

Rec. No. I.-The extent to which the micro level planning and execution have been weak is evidenced from the tardy implemel4- tation of several projects. That the position should continue to be so even after two decades and a half since the commencement of the plan and in spite of successive examination by the Committee of individual undertakings as well as horizontal reviews of all the undertakings shoWs that there is lack of political will andlor the mal1agement have yet to learn a lesson and acquire a will to ensure that the Public Sector is well organised. There have been enormous delays ranging up to 61 years" in completion of several industrial projects. In some cases surprisingly no original schedules of c011ll?letion were set and in others these have been frequently revised. Even in service and other non-pl'o- duction enterprises there have been conside'rable delays ill commencement of business or in their becoming functioDal a'+.er their setting up. All this has been attributed to procr.ural delays, defective planning, decision IJ)aking, acquisition of land, selection of contractors, execution of civil works and .upply of equipment! material, non-availability of power and transfer of assets as also to belated appointment of chief executives and Board of Directors. Thus a clear conc«.lt of requirements of projects and a well coordi- nated endeavour to meet them at the implementation stags seem to have been singularly lacking. The result of this is clear for all to see, that is, needless cost escalation and postponement of realisation of benefits. The Administrative Ministries ana the Bureau of Public Enterprises should. therefore, undertake an' indepth study of this ,problem in order to lay down fresh guidelines calculatE'd to obviate recurrence of this phenomena.

Recommendation (81. No. 7 Pat'lliraph 4.11) The Committee are convinced that central to the problems dis- cussed in the foregoing paragraphs is the failure of management, a factor which remains unacknowledged for oDvious reasons. The

8 9 factors that are the results of this failure are instead brazenly advanced in su,port of poor performance. The Committee have been stressing the need to have an efficient monitoring and appraisal system in their various Reports e.g., 40th Report on Role and Achievement on Public Undertakings. They note that a system has been introduced in 1975, whereby the performance of prodUction enterprises could be reviewed quarterly by the Administrative Ministries associating the representatives of Bureau of Public Enterprises and Planning Commission. If only this has not been as perfunctory as it seems to be the pOSition would not have been what it is now. It is strange that Bureau of Public Enten,rises which is supposed to get the information and be a participant in such reviews is not in a pOsition to furnish readily any details to the Committee. The Committee would like to know how the system was operated during the last three years with special reference to the problem units. Reply of Government As observed by the Committee, there have been delays and cost over-runs in several industrial projects. Government are greatly concerned over the delays in implementation of sanctioned projects and cost escalations over the IMi>proved estimates. Detailed instructions and guidelines were issued by Government that every proposal for a new project should be based on proper feasibility study and realistic detailed project report. This would ensure that such proposals are supported by reasonably accurate financial estimates and realistic time schedule for imQlementation. In some projects inadequate attention at the planning stage had. led to over estimation of demand, prolongation of the period of construction, increase in capital cost, etc. In order to remove some of the deficiencies in the planning stage, attention of all concerned was drawn to the Manual on the preparation of feasibility studies for industrial projects issued in 1966 by the Planning Commission This Manual was subsequently revised and updated in January 1975. . - •....~. \ It was also recognised that in major projects involving large investments, the need for Qroper planning, programming and control on progress was essential if timely completion of the projects was to be achieved to ensure economic returns on the investments. The· advantages of using the Network Techniques (PERT/CPM) in this regard were emphasised in the circular issued by BPE, under BPE No. Adv(O)/Cir-63/70 dated 30th March, 1970. lG~ide1ines and the framework of procedures to be 'followed for monitoring progress of construction by using PERT fCPM were communicated to 3442 LS-2. 10

various enterprises through their administrative Ministries und~r No. 1276-AtIv'(C) ICiI--69/'1O dated 3rd September,lt'IO-vide paps C-tl, of Vol. 2 of ~'Government Policy for the Management of ~blie Enterprises". With a view to providing the management of each Public Sector Enterprise with it reliable and practical ruide to the application of Network Analysis to other than construction activities, the Produc- t_ Division of BPE issued a comprebensive Manual under BPE No. FlllI11'11-Prodn. (Pt. I) dated the 23rd September, 1971.

B.P.E., in consultation with Planning Commission and administrative Ministries had also prepared formats for progress reporting by Public Enterprises quarterly to the administrative Ministry, Planning Commission and BPE in respect of new projects or expansion of existing I;>rojects under construction approved by the Public Investment Board vide O.M. No. 1388IGL-003175IT&R116(4) 172 dated 11th March, 1975. Subsequently a detaileCi study was undert~ken by the sub-groups appointed by the Advisory Committee on Manage- ment Accountancy which was constituted under the Chairmanship of the then F.M. in August, 1976. The formate for reporting to the Ministry of C & F and the CPWD have been evolved. All Prod1lc- tion oriented Ministries are presently examining extent upto which the existing reporting systems need modification in the light of the formats evolved for the Department of C & F and CPWD. Apart from this the Ministry of Defence, Steel & Mines, IndUstrial Deve- lopment, and C Ir F have informed the Bureau that they have inBt;- tuted regular system of r~orting and periodical meetings are held to review the performance of each individual enterprise.

It may be observed that cost escalations and postponement of the realisation of benefits do occur due to multiplicity ot factors, such as delays in land acquisition, delays in supply of bolh impbrteci and indigenous equipment and raw materials, delays in erection, labour problems at site, non-receipt of drawings, inadequacies in project fermulation and estimation of costs, price elCalation due to global inftation, increase in import duty, fluctuations in exchange rate. inCl"88le in interest rate on loans. Delays and the COlt escalation which had taken place in many projects also came up for discussion before the PIB. As a result Department of ExpenditW'e (Plan FiJlaDce) bas issued fresh instructions vide their O.M. No. F. 1 (18).1 PF-DJI78dated 23-11-1178. These instruction iftk70 cUta envisage prepvattoD of detailed project reports and detailed cost estimates in respect of projects secttoned' beyond their delelated powers. II

The MDistries are also required to ensure that the monitoring system is adequate and strengthened wherever neeessary.

It is recoanised that over and above -all these measures, in-depth studies would bring into sharp focus factors which militate against execution of the projects within the approved time and cost fram~. BPE has, therefore, in association with the administrative Ministry and experts in the field taken on hand selective studies of some • ~rojects characterised by time and cost over-runs, namely, Bokaro Steel Plant (First Phase), Barauni Fertilizer Project. Fertilizer Project has since been ftnalised. .

It may be submitted that following the recommendations made by the Estimates Committee (5th Lok Sabha) in its 98th Report (April 196(i) and reiterated by the Committee in its 2nd Report (6th Lok Sabha), detaiied instructions have been issued to the Adminis- trative Ministries/Enterprises for submil8ion of reports on completed projects vide BPE's O.M. No. BPEIGL-0041801 (I&R) 116(7) 179 dated 14th lI"ebruary, 1980. The information would be 6ubmftted by the public enterprises to their administrative Ministries in five formats to enable them to analyse the manner in which the project has bf!en implemented and to compare the information on the end results with those anticipated in the Project Reports and draw conclusions for improving the project management in general. Apart from 'this, keeping in view the deteriorating levels of performance in some enterprises, both in physical and ftnancial terms, it has been su·g- gested vide BPE O.M. dated 4th August, 1980 to the administrative Ministries that the following would help to take timely corrective action:-

(a) as one of the measures for ensuring a greater vigilance on the ftnancial ~erformance of the enterprises in t.he year 1980-81, a system of monthly reporthlg of profit and loss position by pUblic enterprises to the Administrative MtnistrieslBPE to be instituted as an integral part of the Reporting System of Public Ente!"prises to Government.

(b) the system ot holding quarterly performance rewew meetings by the Administrative Ministries with the Chief Executives of Public Enterprises already installed in many of thl' Ministries/Departments should be made a regular feature in all the Ministries/Del;Nlrtments, representatives of Planning CommilSion and BPE, among others wouJd partldpafed in these meetings. 12

(c) if in such review meetings ~ould bring to light any specific q1easures requiring inter-ministerial co..ordination at the Government level. [Ministry of Finance, Bureau of Public Enterprises O.M. No. 3 (5) 179-BPE (GM-I) dated 24th December, 1980]

Recommendation (SI. No. Z, Paragraph 3.11) The malady of under-utilisation of capacities all ,these years is quite glaring. The position if anything seems to have deteriorateci during 1977-78. This inference is inescapable from the detaUs brought out by the Committee. Unutilisation or under-utilisation of production resources means a severe loss to the national economy. Total investment made by Central Government on industrial and commercial enterprises amounted to Rs. 12,851 crores at the end of 1977-78. Huge amounts have been borrowed from foreign sources and the machineries pur- chased thereby have been kept unutilise.d or under-utilised on the cYne hand and on the other hand there are heavy service charges on these foreign loans. These factors tend to cripple our economy. Reply of Government The observations of the Committee are noted. [Ministry of Finance, Bureau of Public Enterprises O.M. No. 3 (5) /79-BPE(GM-I) dated 24th December, 1980] Recommendation (SI. No.3, Paragraph 3.13)

In the case of Heavy Engineering Corporation it is interesting to note that the production in its Heavy Machine Building Plant is stated to have been diversified to manufacture mining equipment whereas there is already high under-utilisation of capacity, for such equipmeQ,t in the Mining and Allied Machinery Corporation. It is also note- worthy that though a number of units producing railway wagons suffer from want of orders and have large un-utilised capacity, Gov- ernment have recently taken over the Mukameh Unit of Britania Engineering Co. and the undertakings of the Arthur Butler & Co. "In order to ensure continued manufacture of railway wagons and other 'allied goods."

Reply of Government

Heavy Machine Building Plant of HEC is engaged in the ~~nu facture of machinery and equipment required for open cast rmmng, IJ

such as draglines, shovels, dumpers, excavators, OB drills, etc. besides the metallurgicai and steel plant. equipment. MAMC, on the other hand, is engaged primarily in the manufacture of mining machinery and equipment for underground coal and other mines. It also manufactures big size machinery for material handling equipment like conveyors bucket system and coal washery plants. The areas of operation of both the companies are, therefore, broadly demarcated. In a few cases, there may be some overlapping in respect of machinery and equipment required for both open cast and underground mining operations.

As regards Mis. Arthur Butler & Co., Muzaffarpur and MIS. Bri- tannia Engg. Works, Mokameh, these were taken over by Govern- ment on 14th February, 1974 and 22.nd February, 1974 . respectively and subsequently nationalised by an Act of Parliament, and were vested in a newly incorporated Company viz., Bharat Wagons & Engg. Co. Both ~/[/s. Arthur Butler and Britannia were engaged mainly in the manufacture of Wagons. These undertakings had more than 1500 workers on their rolls at the time these were closed by the private sector managements due to mismanagement. The objectives of Government intaking over the management and subsequent nationalisation were (a) to protect the interests of the employees who would have otherwise been thrown out of employment and (b) to maintain production of wagons which merits high prio- rity. The take-over ot these units, which are only engineering units in that part of Bihar was consMered appropriate in the national interest.

[Ministry of Finance, Bureau of Public En~rprises O.M. No. 3(5) /79-BPE(GM-I) dated 24th December, 19801

Recommendation (SI. No. f para. 3.13)

The reasons for the malady of unutilised capacity are deeper than meet the eye. The Committee are left 'with the impression that the production planning management and control are not what these should be. The claim ot the Government anp of the B.P.E. in particular, to have studied the problem in depth and taken remedial steps is not at all barae out by any tangible results. The consequence of the utter neglect of this crucial area seems to be nobody's responsi- bility. The Committee would, therefore, like to know what concrete steps were taken in the units where the under-utilisation was more than 50 per cent and why the position should continue to be so bad. In this connection they desire to make it clear that there should be no q\lefl~ion of allowing expansion of a line of production where the 14

existing facility therefore in any undertaking retnains under-utilised to the extent of more than 25 per cent without vlUtd reasons. This should invariably be kept in mind at the time of scrutinising investment proposals. Reply of Govel'Dlllellt The under utilisation of capacity arised from a number of factors some common and w.ldely prevalent and some specific to particular projects. Inoadequacies in project preparation and the technological and other deficiencies which resulted in delays and cost over-runs have also resulted in prolonged commissioning periods ;md inordinate delays in reaching satisfactory levels of capacity utilisation. Examples in point are Durgapur Fertilizer Plant of Hindustan Fertilizer Corporation and Khetri Complex of Hindustan Capper Ltd. There are also specific factors in each case, such 86 limitations on powter 'availability and raw mateI'lial avalability, equipment breakdown, industrial unrest. market constraints e~c. Various steps have been taken by Government over the years to overcome the problem of under ub1isation. These are detailed in a separate chapter on "CAPACITY UTILISATION" in the BPE's Annual Report. Commencing from 1972-73 in pursuance of the recommendations of the Parliamentary Committee on Public Under- takings in their 40th Report on Role and Achievements of Public Sector, this chapter is invariably being included in the B1!E's Report. The chapter gives analysis of the state of utilisation in i'ndividual units in different groups of industries viz. Steel, Coal, Minerals and Metals, Petroleum, Fertilizers & Chemicals, Heavy Engg., Light & Medium Engg. Transportation Equipment and Consumer Goods The factors a1!ecting capacity utilisation, as a1so the action taken by Gov- ernment are reported annually. A number of steps have been taken by Government and Public Sector management to improve the working of the enterprises. Some of the important iteps taken to optimise utilisation are:- (i) Diversiflc:ation of product-mix. (ii) Provision of c~ptive power equipment. (iii) Proviaion ot balancing facilities, modernisation and rehabilitation of plants, impNvem.ent of taehnology. (iv) Engagement of consultants for technical assistance to improve performance. (v) ImprOVed maintenance practices. 15 ...... ~~ .. -"":;'.-. ) (vi) Development of ancillary unitslsub-contracting. (vii) Export eft'orts. (viii) Improvement in managerial and operational eftlclency. (Ix) R&D eftorts. (x) Increasing labour productivity by providing incentives; and (xi) Development of operating skills by training.

Among other steps taken specific mention may also be made of the perfonnance Review Meetings held periodically in the administrative Ministries in which representatives from BPE and the Pl'an- ning Commission also participate. Govemment accept the recommendation that where the capacity remains under utilised to the extent of 25 per cent, no expansion ."hould be allowed unless there afe valid reasons for doing so. Statement 'at Appendix I indicates the measures taken by the f:nterpr'ses for improving their capacity utilisation. (Mini'stry of Finance, Bureau of Public Enterprises O.M. No. 3 (5)J79-BPE(GM-I) dated 24th December, 1980] Recommendation' (SI. No.5, Paragraph 4.7) The absence of even minimal production and cost control seems widespread and no note of it has been taken by the management of the enterpriaes or Government. The position during the year 1975-76 in relation to 94 Government Companies 4lnd 25 subsidiaries in respect of which reports were received by the C & AG from the Company Auditors in pursuance of his directives could be summed up as follows:- 34 Companies did not achieve targets of production. In 24 companies there was no regular costing system. In 42 companies there was no system of ascertaining idle time for labour or maehinery specifying the reasons therefor. In 28 companies consumption of raw materials was more than standard estimates. In 26 companies standard costs for main products had not been fixed or stancmrd costing system not introduced. In 15 companies actual cost of production was more than estimated/standard cost. The Companies that suffer from combination of most Of these deficiencies are:-(t) Heavy Engineering Corporation Ltd., (ii) Hindu. stan Zinc Ltd., (iii) Steel Authority of Indi'l Ltd. (iv) Indian Drugs and Pharmaceuticals Ltd. (v) Hindustan Machine Tools Ltd. (vi) National Instruments Ltd. (vii) Mining and Allied Machinery Cor- poration Ltd. (viii) Fertilizer Corporation of India Ltd. (ix) Bridge & Roof Co. (I) Lta. (x) State Farms Corporation of India Ltd. (xi) Bharat Coking Coal Ltd. The Committee would like to know what precisely were the steps taken all these years to remove the deficiencies in these cases. .

It is no wonder that the ratio of cost of sales to sales is adverse in as many as 56 public undertakings in 1977-78 which can only be attributed to lack of production and cost control. This has con- siderably eroded the p.rofi1'l.s of the Undertakings during 1977-78.

Reply of Government

It fs noted that above observations are based on the CAG Report for the year 1975-76. In this context, it may be mentioned that Government, in pursuance to the recommendations made by the COPU as also the Administrative Reforms Commission in the~r Report on Public Undertakings had advised the enterprises of the Central Government to introduce Costing Systems hased on Standard Costing and Bud~etary control. The enterprises indicated in the recommendation of the Com- mittee have been consulted. It is noted from the replies given by them that a number of deficiencies pointed out by the CAG have since been rectffied by them. A statement shOwing the principal deficiencie3 and the steps taken by the concerned enterprises is enclosed. (Appendix n) [Ministry Of Finance, Bureau of Public Enterprises O.M. No.3 (5) /79-BPE (OM-I) dated 24th December, 1980]. Comments of the Committee [Please see Paragraph 7 of Chapter I o'f the Report]. Reeommendation (St. No.8., Paral1'aph 4.12) The Committee regret that in spite of what has been stated in regard to the existing system ot monitOring and appraisal performance has been disappointing. A meaningful periodic review of producti~, consumption of 'raw material and utilisation of man- power and machinery as well as cost and efficiency is a must It is also necessary to verify the statements furnished by the enterprises independently through a specialised agency. The Committee have found th'at the figures of proftts/lossea of public enterpriR! brought out by the Bureau did not tally with those of audited accounts. They have reasons to suspect that the data regarding con- sumptionof raw material. employment of casual workers and pro~ duction are not invari'ably accurate.

Reply of Government It is true that in certain cases there was variance between profit 01' loss figures of certain Companies as reported in BPE's Annual Report and conesponding figures shown in the Annual Reports of such companies. The reasons for such variances arc given below:- (a) To ensure submission of the BPE's report a10ngwith budget documents to Parliament, a time-bond programme is required to be followed. As such, BPE incorporates provisional figw'es in respect of those companies whose annual accounts could not be adopted" before the report is sent to Press. Based on above, provisional figures were incorporated in BPE's Annual Report for 1977-78 presented to· Parliament on 20th February. 1979 in respect of the following- companies. : (i) Mishra Dhatu Nigam Ltd. (ii) Indian Iron & Steel Co. Ltd. (iii) Pyrites. Phosphates & Chemicals Ltd. (iv) Bharat Coking Coal Ltd. (v) Coal India Ltd. (vi) Eastern Coalfields Ltd. (vii) Western Coalfields Ltd. (viii) Braithwaite & Co. Ltd.

(ix) Bridge & Roof Co. ~td. (x) Bharat Opthalmic G\ass Ltd. (xi) Modern Bakeries (I) 'f-td. (xii) Rehabilitation Indust~ies Corporation Ltd. (xiii) Andaman Nicobar \ Islands . Forests and PlantatioA Development Corpora~ion Ltd. (xiv) Central Fisherie8 Cor~ration Ltd. - i (xv) Jute Corporation of India Ltd. (xvi) North Eastern Handicrafts and Handloom Developmmt CQrporation Ltd. 18

(xvii) International Airports Authority of India. (xviii) Dredging Corporation of India Ltd. (xix) National Projects Construction Corporation Ltd. (xx) Central Mine Planning & Design Institute Ltd. (xxi) National Textile Corporation Ltd. (Holding Co.) (xxii) National InsuTallce Corporation Ltd. (xxiii) The Oriental Fire It General Insurance Co. Ltd. (xxiv) Agricultural Refinance & Development Corporation. (xxv) Oil India Ltd. (xxvi) Wagons Ind~ Ltd. (b) In the Annual Report of some companies the net profit or loss figures are computed after appropriation to certain reserves statutory or otherwise, whereas in BPE's report such figures are shown before such appropriations. (c) The Bureau's report relies on the figures of consumption of l'aw materials, production, etc. as supplied by the undertakings after certification by the auditors of the enterprises except to the extent indicated in (a) above. [Ministry of Finance, Bureau of Public Enterprises O.M. No. 3 (5)/79-BPE (GM-I) dated 24th December, 1980J

Comments of the Committee Please see Paragraph 10 of chapter I of the Report. [RecommendatiD. Serial No. 11 (ii-vii), Paragrapb 4.15] The Committee further require the following to be acted upon:- '" • ... • (ii) The Bureau of Public Enterprises should also forthwith evolve an effective monitoring and appraisal system in respect of service enterprises. trading enterprises, etc.

(iii) The Management ratios which ~uld be indices for evaluating the working of the public undertakings from time to time as already evolved for production enterprises and to be evolved for the r.t, sho~ be brought out in the annual reports of the Bureau of Public Enterprises. 19

(iVl) The performance appraisal reviews to be taken periodically should cover the defiCiencies in the system of control as brought out in the reports of the C & AG.

(v) The Annual Reports of the Ministries should contain detailed information on the overall functioning of public enterprises, the tesul ts of performance reviews and the action taken on the basis thereof as well as the improvements made.

(vi) Any reviews either by the Bureau of Public Enterprises or by the Ministries as are published in their annual reports should clearly relate the achievements of public undertakings in different sectors to the plan anticipations both in regard to generation of internal resources and the value added. The gaps in achievement should be highlighted to inform the wider public who are the real owners of these enterprises.

(vii) The role of the Bureau of Public Enterprises needs to be redefined in order that it can truely function as a clearing house of information with an in-built system of feed back to the public undertakings. as able co-ordinator where matters are of multi-diSCiplinary character, a critical but a constructive appraiser and a guide. This should include evolving of a system of incentives and disincentives so that all concerned especially the management of the public sector enterprises would, acquire a stake in the success of the public sector. The career advancement of Executives should be related to the perfonnance of the units under them. Reply of Government

......

(ii) The Bureau and the Administrative Mipistries have developed Management Information System under which the public sector enterprises are required to furnish periodical (monthly, quarterly and annual) reports relating to production, sales, profits, etc. to the Administrative Ministries as well as the Planning CommiSSion and the Bureau. Based on these reports, the perforrriance Cit the enterprises is monitored and appraised by the administrative Ministries with special emphasis on the solution of problems faced by the companies. In addition, the Bureau submits quarterly reports to the Government indicating the performance in aggregate as well as individually, of public sector enterprises. , In view of this position, no further action SE"ems to be called for. :20

Comments of the Committee

(Please Iwe Paragraph 19 of Chapter I of the Report)

(iii) The recommendation is noted. Efforts will be made to present in the Annual Report additional management ratios for evaluating the working of the service enterprises as done fo), manufacturing enterprises.

(iv) The performance appraisal by the Bureau is carried out much in advance of the submission of reports by the Comptroller and Auditor General. However, "iforts are made to cover the areas/ deficiencies pointed out by the C & AG, at the time of preparation of subsequent appraisals by the Bureau.

Comments of the Committee

(Please see Paragraph 22 of ch'apter I of the Report.)

(v) Most of the Ministries ~re giving detailed information about the overall functioning of the public enterprises under their administrative control, as desired by the COPU. However,. the recommendations is being brought to the notice of the administrative Ministries.

(vi) Sector-wise figures of value added are not provided in the Annual Plans or Five Year Plans prepared by the Planning Com- mission. In the absence of these, it is not possible to compare the actual value added by the public enterprises with the plan estimates. It is, however. feasible to compare annual Plan estimates of internal resource generation with the actuals.

Comments of tile COMmittee

(Please see Paragraph 25 of Chapter I of the Report.)

(vii) Bureau of Public Enterprises is a nodal staff agency of the Government and is primarily concerned with management advisory service in various facets of the Public Enterprises llanagement. Its 21 role is mainly consul~t~ve and advisory in nature. Presently the functions of the Bureau are as under:

(a) To assist the concerned administrative Ministries in making a more expert scrutiny and evaluation of Detailed Project Reports/Feasibility Studies and Investment Proposals.

(b) to assist the Public Investment Board and the Expenditure Finance Committee in scrutinising the investment proposals.

(c) to prepare and furnish periodical Reports Le., annual, mid- year and quarterly reports based on production, progress of construction etc. (d.) to inform Parliament and Government regarding the performance and working of the enterprises. (e) to undertake in depth studies of public enterprises wherever considered necessary. (f) to assist the concerned administrative Ministries in con- trolling expenditure on project construction, administration and residential buildings and ancillary facilities. (g) to assist the concerned Ministries and enterprises in evaluation and implementation of the managerial personnel policy for the public sector and in particular assist in spotting, screening and selecting talent for managerial posts in senior and top level through Public Enterprises Selection Board.

(h) to compile and analyse information on the terms and conditions of s'ervice of employees and advice Government and enterprise with a view to ensure rationalisation wherever possible.

(i) to co-ordinate arrangements for training of managers of public entei-Pfisesooth in India and abroad, and advise and assist th~ enterprises in management development. 22

(j) to act as a Data Bank and Clearing House of i'nfonnation in respect of important matters of common interest such as organisational structure, delegation of powers, pricing policies, etc. (k) to maintain liaison with the Department of Administrative Reforms in matters like Work Study, Operations Research, and Improv~ Repor,ting systems, Incentive Schemes in India and abroad. (1) to co-ordinate the work relating to examination of reports by the Parliamentary Committees.

2. The Bureau of Public Enterprises is already discharging its role as envisaged by COPU. At present the B~a1.l is organised into ~ix constituent Divisions, t'iz. (i) Administration" Co-ordination (ii) Construction (iii) Finance (iv) I & R (v) Management and (vi) Pro- duction. The activities of the Bureau include:- (i) Techno-economic appraisal of feasibility study and detl;lilt'd project reports. (ii) Appraisal and monitoring of production performance. (iii) PromotiDnal efforts directed towards improving productivity in public enterprises. (iv) Studies of various aspects of the working of public enterprises. For this purpose, Bureau has on its role specialists In the field of mechanical engineering. metallurgy, mining, material management, chemical engineering, costing, finance and management etc. As organised at present, the Bureau is able to undertake multi-disciplinary scrutiny 01 performance of PSE's and investment appraisal. As such re-organisation of the Bureau on the basis of groups of analogus enterprises is no~ consiMred necessary. '3. The headquarters of the public enterprises, as far as possible are established close to their a'reas of operation, except in the case of multi-unit enterprises. The continued location of Hqrs. Of certain enterprises in metropolitan cities like Delhi, Bombay, Calcutta and Madras is being separately 'reviewed by the Government following the recommendations of COPU in their loOth and 22nd Reports. • * • • rMinistryot Finance, Bureau of Public Enterprises O.M. No.3 (5) I 79-BPE (GM-I) dated 24th December, 1980.] Coaua.... of the ComIIlittee Please see Paragraph 28 of Chapter I of the Report. mArl'D IH RECOMMENDATIONS WHICH THE COMiMlTTEE 00 NOT DESIRE TO PURSUE IN VIEW OF GOVERNMENT REPLIES

Recommendation (SI. No.9, Paragraph ".13)

The BPE has been maintaining a facade of monitoring. Obviously it is unable to cope with it. The Committee therefore are constrain- ed to suggest that the public sector enterprises should be grouped based on their characteristics and nature of business and for each group of enterprises there should be a set up to oversee the functioning from very close quarters. The BPE should also be reorganised as far as possible on the above lines. The Headquarters of the enterprises as well as of the groups of enterprises should be as closely situated to their area of operation as possible.

Reply of Government This has been dealt with under Recommendation No. 11 (vii) (Chapter II). [Ministry of Finance, Bureau of Public Enterprises O.M. NOr 3(5)179-BPE (GM-I) dated 24th December, 1980 .. ] Comments of the Committee

Please see Paragraph 13 of Chapter I of the Report.

23 'CHAPTBR IV RECOMMENDATIONS IN RESPECT OF WHICH REPLIES OF GOVERNMENT HAVE NOT BEEN ACCEPTED BY THE COMMITTEE

Reeommenciation [81. No. 11 (viii), Pararraph·4.15]

Government should bring out a white paper critically appraising 'the functioning of the public undertakings and present it to Parlia- 'ment within a period of six months indicating the programme separately for manufacturing and non-manufacturing enterprises. This should clearly set out the measures proposed to remove the deficiencies under a time bound programme.

Reply of Goverament

An appraisal of different facts of the performance of public sector enterprises alongwith sectoral analysis is presented. annually to the Parliament by the Bureau of Public Enterprises. The Report, inter ,alia, covers (a) Investments & Returns, (b) Profitability, (c) Capacity Utilisation, (d) Generation of Internal Resources, (e) Management of Inventories and Working Capital, (f) Creation of Employment oppor- tunities, (g) Plant Maintenance, (h) Development of Ancillary Indus- tries, (i) Pricing Poli'cies, (j) Management Development, and (k) Training, etc. Tn view of this position, a separate White Paper on this subject is not considered necessary. [Ministry of Finance, Bureau of Public Enterprises O.M. No. 3 (5) /79-BPE (GM-I) dated 24th December, 1980]. Comments of the Committee

Pie'ase see Paragraph 1(; of Chapter I of the Report. CHAPTER V

RECOMMENDATIONS IN RESPECT OF WHICH FIN.AL'REPLIES OF ·GOVERNllBNT ARE STILL AWAITED

Recommendation [SI. No. ll(vii), Par.-ph 4.15]

'11J.e Government representatives on the Boards of Management should be held personally responsible for any serious lapse ud mal- functioning of the enterplises, unless they draw pointed attention of -the Secretary and the Minister concerned without any lapse Of time. In fact they should e.tfectlvely represent the Governm$t as • whole on the Board but unfortunately their presence in the Board has so far made no differenCt-.

Reply of Govel'llD1eDt

Views of the Government on' the role of Go~rnm.ent Directol'f are being communicated in reply to the re~dations ro8de by the CoDUXlittee in ~ir 20th Report on 'StruCture of Bo8rds OJ Management of P\lblic Enterprtae,..'· .' [Ministry ~ FJIl~ce. Bureau of Public JAterprises a.M. No. . 3(5)/'19-BPE (GM.J) da~ ~~ December. IfIO.J

Ce~t& of the ComIaIttM

Please see Paragraph 31 of of Chapter I of the Report. •

NEW DEuo'; ClWinnAfl., Febn&4ry 28, 1981" ." PJl4tgtl:na. 9, 1902 (Sa.ka) Committee em Public U~"

~ ~

and and

gao. gao.

fUel fUel

I I

1 1

from from

Plant. Plant.

Sindri Sindri

project project

under-

im-

Ammo-

produc-

gypI'CIIIl gypI'CIIIl

on on

1980 1980 .. ..

to to

Ammonia. Ammonia.

c:ommercial c:ommercial

Production. Production.

for for Oct. Oct.

was was

run run

OIl OIl

nuuraf nuuraf

utili.tion utili.tion

taken taken envisaged envisaged

known known

frOID frOID

......

April April

or or

Itock Itock

was was

trial trial

produce produce

5 5

MINlS'fg.S MINlS'fg.S

Modemiaation Modemiaation

Sulphate Sulphate

mpplyofbetterquality mpplyofbetterquality

from from to to

feed feed

Rationalisation Rationalisation

scheme scheme

measure measure

capacity capacity

Rajasthan Rajasthan

declared declared

as as

o. o.

the the

gypsum gypsum

subtitution subtitution

new new

Wll3 Wll3

prodatt1on prodatt1on tion tion

started started (rom (rom

taken taken

oil oil

Besides Besides

nitan nitan

Sindri Sindri

of of

In In

Sindri Sindri

......

prove prove

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""ModemiJation"hued ""ModemiJation"hued

..,A ..,A

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the the

were were

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twas twas

. .

(Nitro-

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capacity capacity

capacity capacity to to

OD OD

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ADMINISTRATIVE ADMINISTRATIVE

pJant pJant

preventil.-e preventil.-e

-..eft, -..eft, repain repain

------

'977-78 '977-78

the the

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total total

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......

& &

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of of

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utililation utililation

FROM FROM

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underutiliaation underutiliaation

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safety safety

during during

......

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Nitrogen. Nitrogen.

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capacity capacity

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......

REPLY REPLY

tain tain sen) sen)

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78 78 duction duction

23.3% 23.3% maintenance maintenance

frequent frequent

for for

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of of

utilisation utilisation

plant plant

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1m 1m

SINDRI; SINDRI;

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Reasons Reasons

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of' of'

I I

,... ,...

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at at

Serial Serial

34 34

. .

ex· ex·

26% 26%

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at at

reIpeCt reIpeCt

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70% 70%

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Gorakhpur Gorakhpur of of

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Durppur Durppur main main

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I I

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UPiHDIX UPiHDIX

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at at

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3 3

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die die

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CAN CAN

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COPU COPU

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OBSERVATIONS OBSERVATIONS

some some

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------~------.------Name Name However, the productiQD of the plant wasaeverely affected due to equipment problemJ during the fint five IDOIlths 01 19'19"80 and inadequate sup- ~lyof LSHS/Cuel oil from :;ept. 79 onward•• The plant COlltinued to be Wlder-Corced mut-dOWJl since 16-1-1980 COl'want ofLSHS{Fuel oil due to A!sam agitation. -

lItIrani :

The capacity utilisation of The measures to imporovo the the plant durins 1977-78 was plant efficiency envi~ (I) 25. 1 % Q'fttrosen). Low cap- modification of carbamate acity utilisation mainly due pumps (ii) augttlen~tion~ to equipment probleuu and capacity om. M. water plant !:I unstable power supply. The and (iii) procurement of one plant was cloeed dOWJlCOl' 140 KSB circulation pump. daY' COl'carryina out modi- • ficationjobil. h fOl' unstable power, a proposal to set up a 2.5 MW Gas Turbine to protect the front and of tbe plants duriDg power 8uctuations U WIder consideration.

AI. nsdt of .cthe above step. capacity utililatiOSl of the plan iDaeued to 35% ill the CoUaw. inc year 1978-79· Howewr the capacity utilisation in 19'79-80 thciugh still hfsber compared to 1~TM8.droPped to SO.SO,{.maWy ~ of ------~..------~., .==:-=-S.~--:;r--·

II 3 4 5

llian.,e ..citNap!uha~and FIII'JaCe ~l frent jaDuary 198c ouwanII tUld ialtable power supply 1!JnNahout the year. DtIr,¥ru The capacity utilisation of the The scheme .to ~~pJant plant during 1977-78 was ef&clency env~ (i) replace- 33.5% (Nitrogen). Low ca- ment of reformer tube and ~~dtyutilisation was d.ue to pic tails (ii) imtallatiQn of li) shutdown of pl~tfor 52 chevron dryers in R. G. boilen daY, beca~of labour fro- drum (iii) replacemeJlt of blem at (ii) techBoiogica de- compressor inter-coolertltube fkieac:ies iD the plant result- buridlea and (iv). installation. ing iii frequent breakdown. of a new H. it. Boiler of 30 . N tonne. per Ln. stream capa- 0- city. The capacity utilisation during 1978-79 dropped further to 2t.9% because of (i) extn. of shutdown by two months for carrying out the modifie&- tion jobs outlined above (ii) reltrictedpower supply on .a:oant oEfloods (iii) breakdown in main refriaeration comprCIlIOr in AmmQUia plant and fire at primary refonner . ~~·.aad(iv) abort supply of Nllpbtha. (U;pacit utilisation 4uriDc .l::lo, ~. iacriued to 85.-% but the plut mil lUffers from certain equipment deficiencies for which further corrective measures have heeD undertaken.

N.",. - ~UJn

The capacity utilisalion of the A captive power generation pllUlt plant duriag 1977-78 was is under constnaetiGa and. 35.6% (NitrOgl!:n). Low cap- expected to be commblioned acity utilisation was due to by July IgBl. This it ~ equipment prablern.such as to cut down interruptiODl and failure of the R. G. Boiler Tu- steady the output frOm the , . ba itt Ammonia Plant cabo- plant. mate pumps, high discharre pressure itt 3l'd ttage of Co- compressor and other equip- The problems were identiikd Blent faUure. Power failure and modification and replaee- and voltqe dips also aO'ected merits ",,-ere takeli up to imp-- 1>:1 prOduction;' . rove the equipment petforiit- (D anee under NatIll'Up III-Elf pansion Project, a capthoc power unit is being !let' up. Thii unit i, expected to take care of the power problem!! of Namr:up II Unit also,

The capaQty utiliaation in the. . ~~,:~.:- followiag yew 1978-79 as a result of corrective measures improved to 49.3%,

Dunn. the year J 979-80 capacity, utiIi~tiopwas h~ ... 33% mainly because offorced shutdown of the plant from

! !

a a

up up

to to

or or

on on

in in to to

full full

for for

acid acid

com-

ready ready

HAL HAL from from

plant. plant.

at at

step step

IUId IUId

from from

is is

it it

necesury necesury

are are

because because

quantities quantities

the the

• •

'977-78 '977-78

win win

production production

effected effected

Ampicillill Ampicillill

gas gas

DOD-avalla-

of of

study study

1978-79 1978-79

sulphuric sulphuric

CODIullanta CODIullanta

plarat. plarat. theSe theSe

of of

to to

possibilities possibilities

the the

taken taken

accordingly. accordingly.

5 5

the the

satisfactory. satisfactory.

were were

working working

the the

during during

1978-79 1978-79

PPCL PPCL

amstance amstance

agitation agitation

but but

due due

in in

additional additional

When When

in in

during during

recommendations recommendations

have have

modification/additions modification/additions

natural natural

Indian Indian

detailed detailed

not not

and and Kg. Kg.

for for

a a

of of

for for

of of

Kg. Kg. revamping revamping

take take

FeI FeI

plant plant

pyrites pyrites

exploring exploring

. .

production production ~1979 ~1979

Assam Assam

0 0

still still

steps steps

to to

plant plant production production

of of

required required

pleted pleted

capacity. capacity.

the the

making making make make

fino fino

obtaining obtaining 680.68 680.68

are are the the

1104

improved improved

is-

of of

bility bility

30-1 30-1

The The

Modifications Modifications

The The

to to

in in

6 6

set set

off· off· the the

The The

tec-

plant plant

the the

capa-

dllr-

affe-

with with

in in

the the

to to

Hence Hence

Roche Roche

the the

low. low. remai-

quality quality

plant plant

Sulphuric Sulphuric

Amjhore Amjhore

Fertilizer Fertilizer

on on

full full

itaproduc-

also also

of of

at at

due due

to to during during

according according

utilitation utilitation the the

MIS MIS

the the

up up

was was

acid acid

plant, plant,

plant plant

of of

by by

for for

4 4

pro:iuctioll pro:iuctioll

tolimlt tolimlt

work work

mined mined

deficiencies deficiencies therefore, therefore,

India, India,

taken taken

Limited. Limited.

acid acid

tebabilitation tebabilitation

pyrites pyrites

no no

The The

Ptoblems Ptoblems

of of

not not

had had

plant. plant.

Sindri Sindri

ofpyrites ofpyrites

of of

meant meant

C: C:

and and

was was

Ml.iification, Ml.iification,

sulphuric sulphuric

plant plant

encountered encountered

under under 19~78. 19~78.

production. production.

assistance assistance

at at

Pyrites Pyrites

acid acid

requiremenu requiremenu tion tion

PPCL PPCL

take take

wa, wa,

city, city,

oould oould

sulphuric sulphuric

hnological hnological

Corpn. Corpn.

up up the the

ing ing

there there

Productll Productll

the the

ned ned

y:":~r. y:":~r.

were were

HPA HPA

cted cted

The The

Amftkillill: Amftkillill:

Vu.-;" Vu.-;"

wa, wa,

C; C;

more more

Project. Project.

ampi-

utilisa-

Vit Vit

.tepto-

was was

pencillin pencillin

of of

oapacity. oapacity.

and and

or or

nil nil

utiliution utiliution

Amjbore Amjbore

19% 19%

c11ncity c11ncity

3 3

bulk bulk

at at

sulphate sulphate

and and

w.u w.u

installed installed

:B% :B%

1971-78 1971-78

1971-78, 1971-78,

than than

mJCin mJCin

production production

cillin cillin

finished finished

tioA tioA

In In

n()t n()t

ins-

nG nG

dso dso

......

tilled tilled

forill-

W W

Q, Q,

--~------~.--.-

i i

!iven; !iven;

(for (for

KathipatDam KathipatDam

II II

or or

tbere tbere

Ccl?lcity Ccl?lcity

Mt Mt

......

dill'ernce dill'ernce

=~ =~

nUed nUed

ulatious ulatious lk:eaeecl lk:eaeecl

..,.aty). ..,.aty).

Liceace Liceace

N'l N'l

....Jo.~ ....Jo.~

• •

,.'---

......

I. I.

&: &:

• •

Ltd. Ltd.

~~< ~~<

...... L ...... L

......

_ _

.. ..

Phcuph1.tos Phcuph1.tos

1US\'\tibi~ 1US\'\tibi~

OUaaicaIs OUaaicaIs

Pytltes, Pytltes, ...... MJDiIby fA 1Dd\ Far IIOIDe items like in· In 1977-78. of utilUation Most 01the plant and machinery Modemitation and di"eni- (Deoartmeat or *'In· duItrial leatber iDstaJ.. _ 19% or footwear, taken over by TAFOO from fication or ecbemea haft ..... ·aJ De¥eIopmeut led capacity IaI for !l4%or hard leather and the Cooper AUeo and North been undertaken. In 1976• TaaDerJ • Footweu IOIIle like footwear 40% orchrome leathn-o West TaDIltty branches of a programme COllin, lb. Oorpa. fIllDdia Ltd. more. BIC Ltd. were obeolete and 280 lakhs waa prepared, (Nt lIDCCODOmiC. of which Rs. 119 lakIM was IaDctiODed for the 6nt phase. Two production units Chroma A IIWD of Rs. 34<90 lakha fini&biug and conveyon 5-4 has been spent on this scheme were burnt dowza due to the upto 31-3-lgBo. fire on J 5-10079 and the re- Ued instalkd production Plan have been ~repared.to capacity for footwear divn. modernise/reorganise/renovate ia!P70 pain per day and pcoduction. Sales and Pur· achievable capacity is 26.6 chase Departments with a pairs per day. view to incrcuing production.

~ 50% or the inItalled capacity Continous efForts are beiq b footwear is for production made to reorpniae and Itream. orDMSboots and other heavy line the marketing let up. duty boots for Defence and Efforts are being made to para-military forces. develop export mulet.

There ia lack of work eulture, , motivadoa IUDOIIpt workers, frequent changesand lack or contiDuity or top management. Laek of qualified tech. oicians and administrative penoand at higher levels,

-, ..~ Ihortaaeor essential raw rna· mall, tanning cbemicah and power abortaae.

N N Cd Cd

a a

of of

&: &:

or or

this this

WIllI WIllI

and and

pots pots

. .

trom trom were were

study study

= =

out out

t~ t~

rea5OI1S rea5OI1S

of of

spite spite

thermal thermal

ceramic ceramic

to to

behavioor behavioor

",a)'ll ",a)'ll

of of

the the

bdn, bdn,

Ceramic Ceramic

consistina consistina

ceramic ceramic

1977 1977

the the

dftired dftired

OGCRI OGCRI

mariuf'aCture mariuf'aCture

out out

achieved achieved

solution solution

finding finding

erratic erratic

glMs.In glMs.In

5 5

fOT fOT

from' from'

the the

of of

May May

be be

the the

& &

Teclmolo!rY Teclmolo!rY

"find "find

for for

improvements improvements reecmuneadatiom reecmuneadatiom

in in

to, to,

behaviour behaviour

suggest suggest

not not

to to

in in

Committee Committee

thrir thrir

up up

committee committee

experts experts

the the

observed. observed. the the

usea usea BPGL BPGL

could could

Glass Glass

efrect efrect some some

oPhtbabnic oPhtbabnic

pots pots problem problem

means means

permanent permanent

for for

set set the the

stability stability

and and

A A

." ."

, ,

V V

is is

of of

In In

._ ._

in-

be-

the the

this this

.. ..

and and

_ _

were were

been been

__ __

Batch Batch million million

to to

bytbe bytbe

pots pots

J'QSOD J'QSOD erratic, erratic,

around around

inheri-

during during

mel" mel"

melted. melted.

4 4

the the In In

is is

up up

is is

plant plant

erratic erratic

bas bas

IDOIt IDOIt

come come

&pc:rts &pc:rts

COIIICq1.letl

adU~ adU~

main main

under: under:

act act

IIMrKimnm IIMrKimnm &:om &:om

far far

tonnes tonnes

,tonnes ,tonnes

'ooal) 'ooal)

~ ~

tormes tormes

tonnes tonnes

c:eraD1ic c:eraD1ic tonnes tonnes

performaace performaace

P. P.

as as WII8 WII8

Defective Defective

Lenaes-

CJ.-

have have

This This

USSR, USSR,

bIanb bIanb

16 16

production production

the, the,

production production

is is

so so

53 53

that that

aQd aQd

Soviet Soviet

of of

'22 '22

of of

Tc:dmology Tc:dmology

muimnm muimnm

.. ..

the the

poll poll the the

( ( .

WQuJdbeufollows: WQuJdbeufollows: the the

197!l 197!l

the the

yean yean

low low prod~ prod~

~ ~

from from

to to

~!Y.~.:. ~!Y.~.:.

~ttee ~ttee

in in

S S

__ __

pes. pes.

mdtirqp. mdtirqp.

l1oQ,tQoQc:I l1oQ,tQoQc:I

Opbtbalmic Opbtbalmic

Op~ Op~

prQCQt, prQCQt,

for for

wbc:u wbc:u

Co. Co. UDbtuaatcly UDbtuaatcly "1iIta&e, "1iIta&e,

tedmoloBY, tedmoloBY, ~ ~ ceptiOD,', ceptiOD,',

achieved achieved

ceramic ceramic

cor1sid«ed cor1sid«ed

ted ted TJae TJae 3 3

due due

~on ~on

nUal, nUal,

theCa. theCa.

haviour haviour

the the

Low Low

The The

1976-~·.6t 1976-~·.6t

.,~ .,~

1975-,6-128· 1975-,6-128·

1974-75-51' 1974-75-51' 19'''' 19''''

1978-7g--79'S5

I. I.

2. 2.

lfDwever, lfDwever,

• •

as as

was was

revised revised

inItaIIed inItaIIed

43% 43%

compared compared

with with

&: &:

utiJDation utiJDation

capacity. capacity.

3 3

original original

overallu overallu

0 0

1~7-78 1~7-78

116 116

installed installed

compared compared

capacity capacity

wi wi

1 1

In In

eompared eompared

capacity. capacity.

2 2

as as

lea lea

•. •.

rm.ed rm.ed

""th ""th

Installed Installed

-----

......

...,-

nla_ nla_

'I 'I

OpbtbaJmic OpbtbaJmic

'. '.

, ,

~ted. ~ted.

-~~~--.;..-. -~~~--.;..-.

. . ~ ~ ...... , h.f&" uu.-u~ t~ in Jr LtJ. U~. "Z- ..... {* UNIT: TONNES Jrt--J tf s.z & MIffU (~ ..rMillis) P.,-."fj prNuetifln,.

'tar IaItaIIed Available Taraet Actual IDStallcd Available _~_ _ Taraets C8pKIty capacity Production capadty capacity ReasonaCor shortfall

!I :I 4 5 6 7 8 9

~,lJtI.'·7~57.000 33J501 ""7% sS·8% (+)118% Production of zinc was below 50% of the ~') (includes ~~ a~cityd~to~~Ok IUpply of power at Debari Zinc ~:o- Smclter (lU=an) and WI- VIDt) .. ~*ry war ' of the mel~ ~. at Viaq ZiQcs.J. ~ R~ .T~1 Plant at ~. wu also !lDdcr-instaRiJtion.

-No tuFts for ziDc mdal wae i&ed COl"Vias- ZiDc:Smelter for 1977- ... ProcIuctianof anc ~ IWted oa1y in __ ... quarter or;1977- .,s, ,

J~7t 750.00e sB.712 59,900 f51.11J6 68· 24% ' 87' 18" 85' 45% t 1Dc:1ude1121 toonea ProdllCtion of zinc \liM below tuaa.-vU- produced au toU basis. a-pis is installed and aVidlabtc - .- -~. ~ty because of outrage on one reCtifier and revempint· of 014 ---~ ..-,-- -- -.------~--- .•. - ---_._------t I ; .. 5 6 i 8 9

router and acid plant at Debari Zinc Smelter, and nOD-availability of proper zinc conc:c:ntratea and major ."" , breakdown of the one of the plants dunn, warranty period at Vizag sine Smelter.

Production of zinc below target .. 75tGOO se.ooo 440~ 59·39~ &'·48% 75·49% __ ,.. "000 via-.. vis iD.flalled and available capa- dtiies due to (i) power cuta, and power interruptioat. both at Debari and Vizag, which were quite leVel'!: in the lart quarter;

.~..... (ii) abonaJe of imported CODCaltratJoD at VIZIIf becau.e of • breakdown of the ship carryiDg concentrate and (iii) breakdown of w Zinc Smc:ltins Furoac:a at Viae. • and Debari Zinc aSmelten. ...,... ••,,, DPw "".rd.

POI' Some iteml iDRalled In 1977-78, utilisation was The nnoition is that specific The installed capacity u ~ and for !II % 01 road-roIlen,:tO'" W"tYhas not been provided reviewed and SUItained effor1I :r:u!: cranes. 44% old diesel for the particular producu. being made to obtain more ~ and 97% oflhip- Certain common faci)jties order for craoes and road- bWldiDr· are used for most of the pr0- rollerl. ducts use of facilities depends . ,,,,.ct on order position as well ar priorities of work. The order position for diesel engines and load rollers has been low rmdtina in low percentaae of capacity utilisation. AIWIIt,-f({r.JuIty (~ '.I HIIIIY lrulrutry) " Name of IIDdertaking I' Capacities variation between P

Q 3 4: 5

• 8Iwat Pwapt ADd lastalled capacity less In 19n-78 utilisation was 1% of com- The capacity utiliaLtion in BPCL in !nan- Compressors. Ltd. presson, 27% of centrifugal pumps, cial tel'IllJ i. upto 86%. The under-utili- 80% of reciprocating pUIDp5 and ution is limited. The cut in power 86% or gas cyIiilden. supply is the main cause for this. The part of the recommendation in 10 far u it concerns expansion in the same line of production where there is under-utiliaation of capacity has been noted, and Iteps are already m hand for impIemenrinl ~ a diversification plan.

II Illchardtoo &DelCNd- For n Il~ileau ian ailed ClPl - In 1977-78 utilisation was 42~ of There is no product line where under-milia- ellIS Ltd. city letl; far othen more or structural fabrication, 46% orrubber tion or capacity is more than 50%. equ.al (for IOIDC items licen- mlllmachiaery and 63% of C. I. Ced capacity not given). castings.

S JetIOPI: 00. Ltd. For J:IIQIt itelD' iastaUed less. III 1977-,8, utilisation was nil of railway There il some under-utili.tion or capacity• ...... and meter-gauge coaches; In order to get optiInum utilisatIOn or p% of paper making plant, 42% their resources, Jessop IDaIlufacture a or road rollers,48% of Itructural wide variety or productl with ~ fabrication and 9%0( crawler tractors. 1"CICIUJ'Cea. This remtCe1l the ~ (or In respect of cranes. utililation was !16% . under-utiliaation due to ftuctuatiDc demand. There has not been Illy increue i.e. capacities in areas havinr Wider utilisation of rooun:es. II 3 ... 5

... Heavy BDaiDeer!ds No diflboence In I 976-77.l'-ClIpacity. utilisation wa, For a unit like H E ~ particulady.HMBP Oorpa. ""t.td. 21% of HJolTplNlt. 90% ofHMB and ttP with a wide manpi"acturqpR16je plalit ~32% .of" plant over- veryips trfllli time to tim~•. it u CKtraJd.. Y all lor 1977.,.a ~cd not liven ; difficUIi to fix a capacity. Before I.e stated ~ review due to change ~. or the ~'ear,prodUCtion plant in pfodud~mix." for tbc next year is finalilCd. 11l!s takes into accoUnt the orde,n in ban4. the machine hour availability, prodUctivity etc. The production plan is brokeu jnto items and alIo monthwise targets finalised. Actual performance of eaCh month is ~ \'lith th~tarJela 80 thaimon- faUs could be controlled and made up in the subsequeut months. 'tbere i. a replar system of maintenance of data relating to idle time of labour and madWle. Co) tr) 5 MiDbtaand Allied Machi- Installed ~ty leu In 1977-,8 capacity utilisation wa, This ~tion was earlier named as Coal nery Corpn. Ltd. c.,. ror miDq equipment 33% of eoaveyor aDd lICfappcr and Minin•. Machinery Project Heavy Bugine- - 84"ICII and lor c:o.nlq'- 55~ of rniDing equipment. Overall ering Corporation Ltd., Randri, and or aM scnpper6i% lea (for utilisat.ion of the company was 43%. set up for manufacture of 4soontOlUlel of some Items no lic:mced capa - coal Mining Equipment. In view of city led). the extreme ahortJlge of demands on coal mi.niot• equipmentl, MAMC bad nO alternative but to take up a major diver- s1&cation Pl'OII'amme which included manufacture of bulk handling equipmart for portI and execution of variOUt other turn-key projects. Besides defer1"~tof mining. equipment order· amountintto Its. 4~ lakhs wu not withdrawn by Mis. Coal India Ltd. Their ttfForh were to rOlter Ron-traditional cli~tsfor !lCcuring orden • for the under-utilisation load ccutrea . As a result of orientaton dilCU3&ion by the ----....--.----,-_- ___ ~_. __ --e.,.~-- __...______" ______- C.M.D. with the prmpectiVl" CUSUlDlers -----.... ---- '------_._------. ---- Mtlowed up by ideinilicatron 61., specik piOducta they have been IWlCeI!Sful in obtaininaOrdtts from Chittar.u)aD Loco- mOtive. Worb etc. They have. also succeeded in making a bq1nnlDfi by securing export orden worth RI.· 1 aore for Turkey and Afghanistan. New liBel of production to till the turn-over pp have been work~dout in respect of various machiDt'"

· 6. Bbarat ¥cavy Elcctrics For some produc:b iust.ued less; In 1977-78 capacity utilisation at Bhopal It bas been reported that the capacity of Ltd. .. for others equal or more. W8I !l8% of, thermal sets. 61 % BHEL is hrin« utilised almOilt fUlly at of power transformers. 53% of pre.ent. , cOIrirot panelS.

At HanIwar utilisation was 33%'of dectric:aI machines. 86% of bydro lIeU and 90% of thermal sets. Col) At Hyderabad utilisation was 30% of -.J thermal IdS, 38%or compressors. 64% of twitchsear and 90% ofpumps.

At TU"UChi utilisation was 78~ of valvca and 8g~ of boiler .wdJiairea. At jhaDsi utilisation was 85% of power transf'ormen.

7. Scooters India Ltd. Installed capacity Cor aU itemes In 1977-78 utilisation was I % of three Mis. Scooters India Ltd., W8I set up ia .Sept. 90% lea for 3 wheelers 40% wheelers and !l7% of two wheelers. 197!1 . for the implementatioo or the of two wheelers. pro~ for the manufacture of I Iakh numben of ll-wheelers per ailDum by . eequiriug . the entire plaDt·and JDIIdIinery of MI•. lnDceuti of l-.1y. ID the iaitiaJ years many tedmica1 probIemI were faced by the oompany whim led to the poor ofl'-uke of the ICOOten which resulted in las utilisatioo of •ty. Detailed ~tipticm,.,and :~aI meuura undertaken have resulted in the ettabli.bment of production of an im- Pf(IftId ftf'Iion of scooters and the demand for the product baa steadily picked up. Special aepa rebting to improvement 10 productivity, quality control, lI'IIU'keting and after sales servlI:a have abo· been taken to improve the working of the Co, A foreign consultancy firm haa abo been engaged. As a result of.tepa taken to improve the worldnf of the c:ompany, the utilisation of capaaty of the Co. was more than 50% during 1978-79 when the production 01'-power pacb was in 1979- 80 is 6s,ooo numbers .. a.gaimt 41,127 numbers produced in 19%79. Mballlry of PetroIeamI: C2IemfcaIs i Depart1llellt of Petroleum

81. NameorUndertUingJ Variation betweeDUeeosedl Position reprding installed capacity Latest position reg. installed capacity uti· No. Project. iDstaJled capacitia utilisation in respect of one or more liaation. main products of overall.

II 3 .. ~

I BIlarat Peboleum IDatalled more for aD plants ; In 1976-77 capacity utiliaatioD was Installed c:apacity is S'25 MMTA and Itl Corpa, Ltd. lOr refinery three timea more 67% or refinery (1977-78 figures of percentage utilisation during !9,s-79 and for Lubo IIIendiDg Plant, production given for 15 months). was ag. 4% and 1979"80 was 91' 8%. Calcutta • times more than Ik:emed.

t. Calla on Ite&ning LiceDeeaBiven for products in In 1976 capacity utilisation was 67% Caltex Oil Refining (I) Ltd. wu (India) Ltd. gallons imtalIed capacity given of crude run {company amalp- amalgamated with HPC in 1977-'78. Its only tor ~ run {"m MT}. mated with Hindustan Petroleum installed capacity is I'SO MMTA and Corporation in 1977-78),. its percentage utilisation duriDg 1978-79 Wl'I' 88· 7~ and 19']9-80 "1M 7S' 3%· s· Hied... PetraIeum FOI' ICIIIle proIIucu iulaDed Production or bulk petroleum preducll HPC Fuel R.efiDery IDataIIed ~ Is a.,a. Ltd. c:apadty, WM equal to iastaIled c:apecity in 3' SO MMTA and or Lube lldinerf is 1977-78. o· 18 MMTA and percentage utiJbaIiao wu:-

Fuel Ref. Lube R~

1978-79 80· 6% 105. 68,4

1979-80 8g. 4% 111'1%

t LuIIaW IDIIia Ltd. No cIiIiereBce. fa 1977-78 utililatiOil was 55% or In 1978-79 and 1979-80 utilUation 01 eDIiDe ~ oil COIDpoDeDtI and 79% oil CIOIDpoaeIlta aDd Chemkal Aditive- • C:bcmlc:Nadditives. was as below :- 13 1978-79 197i'80

Chemical Addititive 8% 90%

&,iu Oil OMrtI'IIfJU

i. AatiaKideDtl - 30% Andwear 29"

ii. I>eteJpua 29% sa"

iii. Dispersants 74% 80% ._--..... -..."

It , 4 5

IIIItaIIed AttaiDabie Actual- %utilila. capacity apacitye CnIde tioD. is (In MM'f) (in MMT) ,,;, put(m~ IIIIt8IIed MMTfDr capllCity 1979-80) (1979-80)

t "' ...... lte6aeriee Ltd. laNlJecl c:apaeity .DOt alYeDfor III 1977-78 capacity niiJiytioo "'M a'so 2·80 2' 82g wz, 88 .all yean, 50% rI Lube Oil hue • 59% of M.8. as CCIIDparedwitb 1ic:c1lRd $ ..... *1.

g Iactiu Oil Corpn. Ltd. Installed ~ty lea (or 1D 1977-78 capacity utiHatioD was 0' 75 0' 85 &.f6 1.1 ta.1II ofHaldia rlGauhati 0- 86- Oujarat acfiDcry (by 50%) p---.. (Gaubati B:::wuand &G;;f"~ae&aerir Refinery) production was more thaIl inItaUed 3'00 3' 30 2-885 capadty. 0vuaII pzodUClioarI all .eI6.. UDI ftlrdiDaieslillftl'iiI!Iwas thaD more installed ) c:apaclty by 9%· s·oo} I 3'00 6'00 7'SO 6'7 t=..) g- SO a' 50 2'492 .l~~ ~) i 1978-'19 1979-80 I. Bridge &: Roof Co. No difference In 1977-78 utilisation was nil of rail - \i) Structurals 56% 64% (India ) Ltd. way wagon and 70% of structuns. (Ii) WqoDS manufacturing discontinued f and corresponding area is DOW UDder modification to suit marine freight con- tainen project due to start ,'•• gSl-82

2. Bieccom Lawrie Ltd. For some item installed capacity In 1977-78 utilisation was 28% of (i) Switch gear 62' 25% 62'25% las (for some no liciensed electric motors and 50% of switch - capacity). gear. (ii) Motor 20' 03% 22' 38%

3. Balmer Lawrie Ltd. • Installed capacity less in the In 1977-78 production was more than (i) Barrels. 1:J8~.~12 9% case ofbarreb by over 50% installed. -". .Ass~ no constraints in crude availability and product off-takes especially LSHS disposal, it is anticipated that the rdinerie; can operate upto this level. 42 P.mnJiJgI "Iilisatillll, inslGllid eapll&ilit,l ad P,tlduetillll qf;rodu.cts PrMUt:td 6" 1PCL. Juri"g 1M Y'Gr 1978-79 tIfIIl 1979-80. ' . ---- - Products Installed Actual %Utili- "'"Actual % Utilisa- Capacity Produc- aation Produc- tion (MTA) tion lion

.. ~ ... --- ..... ------~-... ---.---.----- .4romalics PItnU 1978-79 1979-80 I. DMT 114000 117°71 "3 27939 116'4 2. Orthoxylene 111000 111437 91 18M4: 88'3 3· Mixed xylene 11500 ... Paraxylene .17°00 1 ..9!J1il 88 14sB9 8~8 o¥tu PIlIII,. 5· Ethylene lSOOOO 37618 119 54691 42' I 6. Propylene (PC) 38000 J4375 sa :11°38 55'" 7· Propylene (CO) 43300 1177° (; 9183 lU'\! 8. Butadiene 11l1000 5946 32 88~1 40'2 9· Benzene 113600 5838 42 log,S 43'S 10. Carbon Black Feed Stock 1'900 59 13 33 5197 119'0

Down II",." Plall@

II. LDPE 80000 3 193 1 46 43040 53'8

lIZ. Polyprophylene 30000 6957 • 28 13000 "S'3 13, Palghat-diene Rubber I10OOO 4829 35 8712 43. 6 11, Linear Alkyl Benzene 30 000 f118! 56 13096 43" 15, Elh~lene. • • I10OOO 87 3 687a G ycol/Ethv1ene Oxide 117 3~'8

16. AcryIOllitri1e: IZ4000 J823 36 37114 IS' $- 17, Acrylic,Fibre. 12000 92 18 3468 28'9

'*The various unitt were c:ommilticmed between March, 1978 and May, 1978· @Thf various unitt were conunUsloned between May, 1978 and March. 1979,

~ ~

......

by by

re-

are are

im-

Cos-

Forge Forge

actual actual

lonnes lonnes

tonnes tonnes

Heavy Heavy

process process

records records

their their

_ _

Machine Machine

then then

computer computer

in in

Chief Chief

production production

which which

delayed delayed

production production

year, year,

6,000 6,000

and and

management. management.

cost cost

16,032 16,032

and and

Administrative Administrative

and and

the the

Foundry Foundry

to to

of of

for for

lead lead

were were rostJ rostJ

.. ..

of of

vogue vogue

the the

by by

Heavy Heavy

in in

yen yen

to to

profile profile

in in

target target 75-']6 75-']6

system, system,

A.dit A.dit

Finance Finance

commissioned, commissioned,

& &

Detailed Detailed

is is

tonnes, tonnes,

output output

vogue vogue

in in

from from

facilities facilities

the the

of of

by by

estimateo. estimateo.

deficiencies deficiencies

in in

romputeriJed romputeriJed

was was

examined examined

of of

them. them.

zinc zinc

product product

the the

costing costing

submitted submitted

out out

14>750 14>750

Plant Plant

the the

~t ~t

costing costing

been been

of of

the the

short short

repetitive repetitive

India India

with with

!\fiDistry !\fiDistry

expanded expanded has has

actual actual

has has

wr-re wr-re

job job

fell fell

commissioned commissioned

CXlStmg CXlStmg

not not

of of

1977. 1977.

pebated pebated

each each regularly regularly

the the

rmwve rmwve

target target

or or

be be

fitting fitting time time

are are

in in

the the

instituted. instituted.

in in

BuiIdiDg BuiIdiDg

costing costing

to to

Officer, Officer,

to to

norms. norms.

the the

tonnes tonnes

being being

comparro comparro

because because

idle idle

while while

months. months.

College College

is is

as as

Plant Plant

of of

batch batch

been been

are are

taken taken

process process

productJ productJ

5!.[55 5!.[55

few few

improve improve

Defide:aclee Defide:aclee

plemented plemented

Accounts Accounts

commendationJ commendationJ

a a

envisaged envisaged

Staff Staff

maJb1y maJb1y

exceeded exceeded

of of

1975-76 1975-76 taken taken

()utput ()utput

costJ costJ

the the

Machine' Machine' have, have,

Tools Tools

technology technology

Plant Plant

To To

Steps Steps

Analysis Analysis

While While

NO.5) NO.5)

In In

As As

and and

was was

Forge Forge

system system

serial serial

have have

inade-

labour labour

target target

Report Report

units units

at at

the the

for for

D D

and and

Foundry Foundry

75-76 75-76

some some

in in

products products

C&AG C&AG time time

in in

relDOYe relDOYe

comprehensive comprehensive

idle idle

deficient deficient

made made

. .

to to

main main

of of

1975-']6 1975-']6

APPENDIX APPENDIX

be be

productJ, productJ,

3 3

achieved. achieved.

not not

system system

was was

for for

recomlJ1endation recomlJ1endation

in in

to to

is is

not not

Part-II Part-II to to

out out

certain certain

analysis analysis

costs costs

fixed. fixed.

costing costing

was was

system system

of of

EaterprUes EaterprUes

reply reply

pointed pointed

been been

machinery machinery

by by

considert'd considert'd

~t ~t

(Vith (Vith

Existing Existing

not not

Plant. Plant.

and and

Standard Standard

Cause-wise Cause-wise

Costing Costing

not not

adequate. adequate.

production production

In In

tak_ tak_

quale. quale.

(2) (2)

(3) (3)

(2) (2)

(I) (I)

De6ciencies De6ciencies

. .

Reps Reps

'-wiIq '-wiIq

• •

Corporation Corporation

Ltd. Ltd.

Zinc Zinc

kat_eat kat_eat

Eoterprises Eoterprises

Engineering Engineering

I I

Ltd. Ltd.

HindU6tan HindU6tan

Heavy Heavy

2 2

1 1

SI. SI. No. No. 2 3 .. ------.------~-- --- (3) There was no system for ascertaining idle This has since been introduced from 19n-71:1. ~ time for labour and machinffy and their _J analysis.

(.) Standard ro:.-ts for main products were not For developing standard costing cost codes, integrated fixed. meduiniscd accoanting etc., 'MIs. Badiboi &: Co'!" services were commissioned. They b2I"e subo mitted thdr rqxlI't which is presen~ybring procested. " 3 Steel Authority of India Ltd. ( I) The targrts of production weft! DOt achieved To put Bolani Ores Ltd. and its management on soUDd in respectdBolani Ores Ltd., and the Durga- linu, it hal been nationalised through BoIani Ores pur Steel PIa:m. Ltd. (Acquisition of Sltan5) Act, 1978. With effect from April 1979. it has merged with SAIL and DOW constitutes a unit of SAIL. After examining various facts of the operations of the mine. SAIL has prepat'ed a project report involving an investment of about F >. '""'- 9 crores of which Rs. 5 crorcs is on acoount of rep1.acc. ~. ment of old machinery and equipment. The broad fea~esof this Project Report CO\'er the following:- (i) Phased production programme keeping in view the requirements of I>urxaPur Steel Plant. (ii) Phased replacement/additions in respect of tniWng and allied machinery. (iii)· Phased programme of building up inventory aaJ maintenance facilities. (iv) Rationalisation. and development of man-power in the mine. tr$ning of the. ~ wockmen fur their later useful role has been stresacd.

To improve productivity, a production incentive bonus scheme is abo being d~. -""",~JC~_____ ~...,;p:..~ ..... ~~ In ... n.~.. =--- - I' I -~~,",~.. -~~~~;,qf:~:· <'-:-:.':::.~..,; -..,,::.-~~:;-'~£~;.' ..-:~~-...,'-1;~~.:.

1975-76 production in Durppur Steel Plant was lea than the tuget mainly on acxount of n:stridioD in powu mpply. lack of orders for railway items etc. 'I'he PftIductiOll improved duriDf the year over the eatIiw yean, which tread was mamtamed till 1978-79' In order to get over the difficulties in regard to power, all darts are being made to maximise the output of captive power generation units; further 2 Nos. 60MW captive power plants are beinf installed. In reprd to the orden for Railway materials, although Railways subscquen1t1y agreed to give full orden for keeping the Sleeper Plant workins due to lack of orden. After those power plants are installed by 1993, it is e:xpectIXl that the uniIs' productioo will substantially inc:reue pnwided adequate supplies of power &om DVC u-J coking coal ~ a''ailable.

(2) In Hindustan Steel Ltd., the percentage of Continuous dlbrts arising out of concurrent mooitoring idle hours to a"ailable hours was on the high are alwa,.. being made to reduce idle hours and to aide. take remedial action therefore in all the Wlib of erst- wbile Hindustan Sted Ltd., The main reuoDs for idle ~. tiinea in an tbae units are power restriction, pi shor. tages, coking coal shortages, disturbed ind .. trlaI rela- tions, maintenance delays etc., evay effort is being made to reduce the idle time arisiug &om such factors as are controllable.

(3) Rejections were more than norms fixtd in The rejection figutrs duriJlg 1975-76 were high due to Durgapur Steel. Plant and consumption in operation/technical problems as weD as the adverse ~ Steel Plant was also more than the quality of raw materials. Then: has been littl., or no impnwement in the q\lality of coal and other raw materials. Under such conditions rejections of Iteel cannot be brought under control to the desirni level.

(4) Standard cost for main producu bas not been 1De Coal Washeries Organisation have been computia, filted in Central Coal W_cries Organisa· ~}' target costs with which actual. were being reo tion. ~ compared. -'---'---'-' ----.- -- _._------_. ----.------~--- .. ----.-.------.

2 3 i f

(5) Actual C05t of production was more than The lower volume of production than standard/original estimated standard cost in Durgapur Stee I Plant, budget was due to material and power constraints, labour Bhilai Sted Plant etc. in 75-76. Low prod lelion . problelm, inferior quality of raw materials etc. Escal- r'!Sulted in the actual cost exceeding !ltandard ation in prices or raw mueriala abo contributed.. to COlit, in allllnits.· actuals exceeding the sUUldarm.

(6) The high incidence of under utilisation of In 1975-76 Bobro St('C1 had not gone into full production imtalled capacities and utter lack of control and as such any comparison between its cost of sales and over production and cost of production ha\'C turn over of 1975-76 is not desirable. In other units of resulted in incre3..ing the cost of sales to turn- H'mdustan Steel Ltd., this ratio became adverse in 75-']6 over io Bokaro Sleel Ltd., Hindustan Steel Ltd. mainly because of low actuai output and escalation in Indian Iron & Sleel Co. Ltd .. Bolani Ort's Ltd. proc;es~of various inputs. This was also the reason in etc. Bolani Ores Ltd. While the company is not in a ~positionto exercise any control ~ increasing prices of input necessary step!! have been taken to increase yield Percentage aDd achieve consumption norms, for which a number of technological steps have, been taken. , :.II * Indian DnJ~lit Pharm~eutic;ds(I) Targets of prodUCtion wen: not achieved til This lOW production i(l,.I975-76 was mainly due to inadequat Ltd. respect of many products. availability of certain raw matertals. power failure, market constrainu for certain products, etc. The COIDI*ny is also spending more funds on R &: D activities. New products have been introduced with improved and latest technology, high yidding strain etc. A number of diversification schemes are abo being intrOducrd to make the Madras unit viable.

(2) There was n03ystem of ascertaining idle time Since then the sys~has been introduced. for labour in the s}'nthetic Drug Unit of IDPL.

(3) In the Synthetic Drug, Unit' and the Antibio- This exCCS'Iconswnption for few products "'lIS due • tics Unit, consumption of raw material was wastage of material resulting from process interruption mote than standards/estimates. on aCcolmt of power, steam. water etc. Regular monthly

~ ~

.. ..

in in

to to

idle idle this this

and and

ap_ ap_

and and

time time

been been

ha,,'e ha,,'e

were were

for for

8g:5% 8g:5%

costing costing

shortly shortly

_ysf"" _ysf""

sales sales

Genera-

. .

pll1'pOlle. pll1'pOlle.

ff'Ctivc ff'Ctivc

maintain maintain

idle idle

material material

baa baa

to to

labour labour

particular-

these these co, co,

costs costs

technologi-

two two

because because booked booked

quantity quantity

not not

reason reason

lame lame

for for

raw raw

regular regular

and and

its its

control control

there there

are are

sales sales

instaUed instaUed

unit!! unit!!

a a

booking booking

of of

1977-78 1977-78

does does

the the

producli\'ity producli\'ity

be be

is is

time time

of of

and and

various various

cost cost

for for

shop shop

in in

to to

however, however,

measures. measures.

these these

of of

madence, madence,

idle idle

JnaChiDery JnaChiDery

of of

there there

cost cost

cash cash

Nos. Nos.

Wlit,standard Wlit,standard 5tagt"-wi~ 5tagt"-wi~

}m,-:tant }m,-:tant

90% 90%

profile profile

of of

company company

this this

production production

satisfies satisfies

regular regular

for for

coptrol coptrol

result result

co-efficient co-efficient

HMT HMT

expected expected increasing increasing

output output

regularly. regularly. a a

single single

Order Order

aho aho

The The

from from

of of

time time

company. company.

as as

cost cost

of of

are are

the the

individual individual

intTodu<:ed. intTodu<:ed.

Subsequently, Subsequently,

actual actual

~C; ~C;

product product ascertaining ascertaining

but but

IDltigale IDltigale

theAladras theAladras

labour labour

the the

undertaken undertaken

idle idle

taken taken

in in

units units

Work Work

of of

for for

percentage percentage

way way

is is

for for

in in

orders. orders.

of of

KVA KVA by by

\V&s \V&s

19-80 19-80

been been

To To

the the

fixed fixed

by by

improved improved

adopting adopting

1975-76. 1975-76.

400 400

The The consumption consumption

and and

being being

aU aU

Actual Actual

i975-?6 i975-?6

introduc~d. introduc~d.

work work

increase increase

record record

system system since since

of of

taken taken

in in

been been

specific specific

in in of of

product product

affall'S. affall'S.

to to

are are

record record

&: &:

iho~ iho~

also also

8re 8re

uncertainty uncertainty

time time

sets sets

of of

78-79 78-79

haw haw

thse thse

1978-19 1978-19

been been

fixed fixed

only only

step' step'

to to

each each

manufactured manufactured

in in

present present

time time

actions actions

ting ting idle idle

inst inst

machinery. machinery.

in in

state state

S}'lItem S}'lItem HMT HMT

oflabour. oflabour.

suec:esSfuny suec:esSfuny

of of

review review

has has

cal cal not not

not not

ly ly

5ubatanlial 5ubatanlial

be be

Power Power

There There

At At

These These

Due Due

Compared Compared

in in

on on

COlt COlt

stan-

idle idle

75"76 75"76

been been

IDPL IDPL

of of

in in

achieved achieved

In In

standard standard

of of

not not

achieved achieved

machinery machinery

Orproduc-

Bangalore Bangalore

not not

standred standred Particulary Particulary

etc. etc.

manufactured manufactured

have have

units. units.

their their

cost cost

and and

not not

machineries machineries

interest interest

Plant Plant

included included

ascertaining ascertaining

were were

of of

corb, corb,

Factory. Factory.

not not

individual individual

were were

actual actual

of of

estimated estimated

machines machines

c:en.ain c:en.ain

Srinagar Srinagar

products products

machinery machinery

exceeded exceeded

Bangalore Bangalore

was was

input input

for for

the the

and and the the

incidence incidence

Watch Watch

1975"76. 1975"76.

and and and and

system system

Instnunents Instnunents

production production

for for

than than

that that

printiDg printiDg

in in

which which

the the

higher higher

of of

compla compla

no no

to to

records records

productions productions

COits COits

maintained. maintained.

labour labour

K.aJ_ry, K.aJ_ry,

Sriuagar Sriuagar

cost, cost,

cost cost

credit credit

due due

"'.,.5 "'.,.5 of of

for for

Surgical Surgical

ofHMT ofHMT

not not

WUIDOl'e WUIDOl'e

observed observed

Kalama"'")' Kalama"'")'

time time

Xalall18S8l'l')' Xalall18S8l'l')'

"tarFts "tarFts

---~.------

75-76. 75-76.

the the

is is

the the

dard dard

cash cash

cost cost

lion lion

Banplore Banplore in in

were were

actual actual

1D 1D

in in

time time

units units in in

in in

standard standard

fixed. fixed.

~e ~e

It It

Idle Idle

There There

In, In,

Taugets Taugets

(I) (I)

(2) (2)

(3) (3)

(2) (2)

(4) (4)

(I) (I)

Ltd. Ltd.

Tools Tools

Madline Madline

Iastrumellts Iastrumellts

National National

Hindustan Hindustan

7. 7. 6. 6. lit 3 • ------~------(3) Consumption ofraw material in case ofsome The company hu no control on rate van.oce. products was higher than the DOr'DlS. This difference is fully expJaiDed by rate variance and not quantity variance. 8. MiDiDg It Allied Macbintty Corpn. (I) Colt ruorda were DOt maintaiDed properly Proviousiy the company was fuUowing assembly coating Ltd. to arrive at the COllI: ofeach of the products. which has since been supplemented with component costing system. (2) No records were maintained for idle machi- This system has since been introduced. nery. 90 Fertilizer Corpn. of India Ltd. (I) Tbue were much v.nabon betweeD budget Frequent breakdowns in Sindri. shortage/poor quality estimates and actulas in various units of Ferti- of raw mat~ at ~ur and power interruption lizer Corporation of 1Ddia. • which foUowtd frequent bieakdown in various UDitsare the main reuons for these variations in output. Since than ItCpI have been taken to instal ::aptive generating sets in various Units of Fertilizer Corporation and achaDC for ratiOnalisation offaciHties in the qed Sindri unit has also been taken up. The Sindri mOdernisation scheme ·it has been commissioned on l-to-I979. A compnherufve plan for preventive maintenance is being followed in aU the units to reduce maintenance downtime. (2) In Sindri, Durppur and Gorakhpur units. These excess consumptions are mainly due to process raw material ClODSUDlptionwu higher than breakdowns for various reasons. Steps were taken, as the staDdarda/C'.Itimata. mentioDed earlier. to set up captive power 1Cts', and Sindri IIlOdernisation which would also contribute to reduciBg this over COJlSulDption of raw material. 10. Sri.I: Roof Co. Ltd. .- (I) Target of production 'Io\-a..not achieved in Lot ofmachineries of this old complUly require repJau- 7~-76· ment. Necessary arrangements ba,,"C been made to instal new plant in place of the old and outdated Mac.. hinery. (2) Actual cost was JK't compared with the: est i- Such COIDpIIri3ons are carried out during annual closing mates for each pbaae oC,,-ork. of accounts. II. State FannsOorpol'lltion. • • (I) The target ofproduction wu not achieved In 75-76 c:QDStraint at Fertilizer I: Pesticides contributed in 75-76 except wheat. to this· state of affairs.

(2) There wa~no dTectivtO ~Y'temfor ascrrtain- The nonna of utilisation of machinery have been worked

~ ~

to to

of of

at at

are are

(,f (,f

to to

o~ o~

u u

for for for. for.

of of

bud-

~n ~n

Tl;is Tl;is

taken. taken.

also also

the~, the~,

fnt. fnt.

not not

ha\'e ha\'e

meet meet

area area

necess-

account account

unit unit

~. ~.

Allitems Allitems

unit unit

with with

and and

of of

contrOlable contrOlable

periodically periodically

like like

this this

reviewed reviewed

pf"r pf"r

operation operation

farms. farms.

nOl'Ill$ nOl'Ill$

each each

above above

package package

ee;wpment ee;wpment

rekli"?..Ilcl' rekli"?..Ilcl' ofpr~erib("(! ofpr~erib("(!

actions actions

which which

to to

per per

1'.l:magrnIert 1'.l:magrnIert

is is

accounted accounted

These These

of of

employed employed

the the

performance performance all all and and

proC\lcti(\f\ proC\lcti(\f\

crop crop

and and

purpose purpose

head head

for for

the the

and and

of of

in in

to to

each each

considered considered

basis basis

been been

company. company.

compar~d compar~d

The The

oripputs oripputs

area area

,'arianccs-have ,'arianccs-have

~atisfactori!y, ~atisfactori!y,

,..here\'er ,..here\'er

reviewed reviewed

orthe orthe

booked booked

limited limited

again again

nature nature

Likewise, Likewise,

nOl'Ill$. nOl'Ill$.

cost cost

for for

month month

thf" thf"

of of

O~Tr O~Tr

upon upon

crop crop

not not

the the

actually actually

COITecth-e COITecth-e

and and

are are

operation operation

the the

ha, ha,

the the

On On

and and

m8cbioery m8cbioery

The The

been been

in in

on. on.

Managers Managers

unit unit

to to

inputs. inputs.

W-CD W-CD

these these

every every

of of

have have

review review

inaleparate inaleparate

frolll frolll

out out

and and

agricultural agricultural

so so

taken. taken.

amount amount

Government Government

basis basis

norms. norms. working working

quantum quantum

Th~ Th~ expenditure expenditure

the the

of of

per per

level level

to to

has has

i~ i~

is is

s\"'Stem s\"'Stem

statemerdII statemerdII

system system labour labour

of of

the the

they they

vary vary

other other

tnd tnd

the the

for for

The The

that that

depending depending

analysed. analysed.

these these

booked booked

action action

by by

actual actual

refeftnce refeftnce

stock stock

worked worked

mechanical mechanical

on on

cost cost

month. month.

is is

The The

system system

Ne\'erthelesa, Ne\'erthelesa,

-and -and

to to

fact fact

of of

thear~ thear~ a~on a~on

utilisation utilisation

on on

produce produce

ll"vel ll"vel costing costing

notice notice

thoroughly thoroughly

control control

State State

ident·ified ident·ified

reference reference

wages. wages.

at at with with

down down

the the

labour labour

being being

utilisation utilisation

watch watch

the the

to to

_ _

type type .. ..

every every

reiected reiected

i i marketing marketing

pesticides pesticides satisfactorily. satisfactorily.

taken taken

are are

labour labour

cost cost

rr.gular rr.gular

v"r;ances v"r;ances

to to

with with

back back

of of

group. group.

actual actual

~tandard ~tandard

laid laid

oflabour oflabour

a a

I"f'gular I"f'gular down down

corrective corrective

view view

of of

the the

of of

a a

are are

a a

and and

is is

c10!IC c10!IC

each each

collil"ry collil"ry

fall fall ~ce ~ce

analysed analysed

and and company company in in

State State

is is

WlIl"th WlIl"th

correcth-e correcth-e time time

laid laid

Corporation. Corporation.

agricultural agricultural The The

re re

Cor Cor

purpose purpose

cost cost

eae:l eae:l .. ..

Machinery Machinery

and. and. prepared prepared

cause. cause.

is is

ti.z. ti.z.

be be

hrought hrought

the the

lh lh

ary ary

e."\ch. e."\ch.

of of

grts grts

norms norms

system system keeps keeps

the the

production production

this this

wactices wactices

:states-; :states-;

from from

llizers llizers

the the

Idle Idle

bt-en bt-en

scrutinised scrutinised

for for

utilizatillD utilizatillD

with with

area. area.

out out

There There

'\'hcrever '\'hcrever

Keeping Keeping

The The

for. for.

were were

not not

jdle jdle

intro-

have have

sheets sheets

consum:ltion consum:ltion

of of

introd'.lc:cd. introd'.lc:cd.

properly properly

-cost -cost

I!ICi:rtaining I!ICi:rtaining

the the

not not

products products

approximVion. approximVion.

machinery. machinery.

been been

of of

in in

on on figures figures

was was

notbeenacc;)an.t~d notbeenacc;)an.t~d

machinery. machinery.

not not

main main

the the

but but

shown shown

as as

system system

and and

had had

for for

system system

labourllnd labourllnd

no no

basis basis

stoekhad stoekhad

for for

costs costs

spares spares

labour labour

was was

system system

&: &:

actual actual

inasmuch inasmuch

for for

time time

fixed. fixed.

acco\U1ting acco\U1ting

on on

There There

stores stores

Rejected Rejected

idle idle

time time

Costing Costing

Standard Standard

cost cost

not not

of of

duced duced

been been

(:l) (:l)

(0;.) (0;.)

ing ing

(I) (I)

(3) (3)

.. ..

l.td. l.td.

Cool Cool

Coking Coking

f,harat f,harat

--.-- 12. 12. AP,~BN.D~,X m (VUII plU'a 3 or the Introduction)

AllcblUtll "" ~ ". ~ C...... M ,~h ".,.., iiI'f6I ~.,IA Jfft' oj III, ~ • .,. Pri/dSe;'U."'li",. (SUfi 'l,M &.6.) till PNliI tT"''''''s-Dlt..1:'. (Om".",.,.., '1"""""c~/B"""ss. U"""""'~ Of C,.,riI.1 ..-4 rile,. ""'''''~ , I. Total number or rtcommendatiom. 16

II. R~tiODl that have been, accepted by the ~.meat (1IitII n:cotnmehdations at S. NOI. I. ~. $. 4. 5. 7. 8, II (ii-VIi)].. IS

Per~tase to total

III. R~maadatio..- which the CommIttIIIe do not daire to puilue in view Of GoftnuDent's reply (M recotnmeildacioa It S. NO.9) .

Percentage to total ,

IV. Recommendationl in r~t of' which n:p1ica of' Government bave not been ~~ by the Committee-(Vill recommendation at SL No. II

Perc:entaF to total 6'115%

V. Recomm~on hi. reapect or.w1aich,fiDal replica of Governmeot lite still awaftecl [V'w: recommeaiWtioh.at S. No. III (vW)] • • I

Percent. to total • 6'115%

SO r;~·GIJ·~:RND-.LS 1I-344I1LS 6'3.81' •• 11115