Lack of a proper price policy

There is no clear cut price policy for public enterprises and the government has not laid down guidelines for the rate of return to be earned by different undertakings. public enterprises are expected to achieve various socio-economic objective and in the absence of a clear directive, pricing decisions are not always based on rational analyses. In addition to dogmatic price policy, there is lack of cost-consciousness, quality consciousness and effective control on waste and inefficiency.

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