ABSTRACT
There are many enterprises at the state government level. It has not been possible to introduce data on them on the same scale as those for the BPE enterprises. However, the broad conclusion that their performance has been discouraging, on the whole, seems to be valid. Some specific evidence may be drawn from Andhra Pradesh. The investment of the State government in 1981-82, in equity form, was Rs 304 crores and the return in the form of dividend was Rs 0.5 crores. This worked out at 0.16 per cent on capital, as compared to the government's cost of borrowings at about 5.45 per cent. Public enterprises are expected to produce social returns, unlike, or far more deliberately than, private enterprises. In so doing they may experience diminutions in financial returns. Since these are a product of governmental choice, it would be logical that these should be considered as acceptable impacts on the public exchequer.
