Company Ltd ., has set up one plant each in Calcutta and Bombay for blending industrial and automotive lubricants in collaboration with Mobil Petroleum Co , of New York , on equal partnership basis , known as the Indian Oil Blending Ltd .
The Oil India Limited was formed in February 1959 for the production and distribution of petroleum products in collaboration with Burma Oil Company Ltd . The paid-up capital was Rs . 28 crores , shared equally by the Central Government and the Burma Oil Company .
Indian Explosives Limited is under the management of Imperial Chemical Industries . Of the subscribed capital 20 per cent is held by the Central Government and the rest by the ICI .
Machinery Manufactures ’ Corporation Ltd . has an authorized capital of Rs . 1.5 crores , and subscribed capital of Rs . 69.71 lakhs of which Rs . 25 lakhs ( 4.5 percent tax free special cumulative preference shares ) were held by the Central Government . The corporation is managed by Mahindra & Mahindra as managing agents , and is engaged in the manufacture of textile machinery like cards , carding engines , and diesel engines .
Bolani Ores Ltd . of Calcutta was formed in collaboration with Orissa Minerals Development Co . Ltd ., for the supply of iron ore to the Durgapur Steel Plant . The authorized and paidup capital of the company was Rs . 1 crore . The share capital is held in the ratio of 50.5 to 49.5 by the Central Government of India and Orissa Minerals Development Co . Ltd ., respectively . According to the Monopolies Enquiry Commission ’ s report , Orissa Minerals and Bolani Ores are under the management of Baird Heilgers , whose masters are foreigners .
Manganese Ore ( India Ltd .) of Nagpur was registered on June 22 , 1962 , as a joint venture . In return for all the fixed assets and shares taken over by the new company , the Central Provinces Manganese Ore Company
August - 2022 received shares amounting to 49 per cent of the initial subscription of the new company . The balance of 51 per cent was subscribed in cash by the Central Government and the state governments of Maharashtra and Madhya Pradesh , in equal proportion .
In a total of 8 undertakings , in which Central and state governments have invested Rs . 23 crores 59 lakhs , the private sector , mainly foreign monopolies , have invested Rs . 22 crores 76 lakhs . Thus , in the name of the establishing public sector industries , the Government of India is providing large funds to the private sector . Public Sector in name , but private sector in fact ! That is the policy pursued by the Government .
There are other public sector undertakings in which private capital is allowed to participate in ‘ share capital ’, major among them being Cochin Refineries in which Phillips Petroleum Company Ltd ., USA has been allotted to invest 25 per cent of the paid-up capital .
The private sector has its finger in most government undertakings , either in the form of equity investments or in the form of loan capital , direct management of partnership on the board of directors . The public sector has thus become a happy hunting ground for profits , a source of increasing disparities in the control of national wealth and distribution of national income .
We have so far seen how private capital , especially foreign private capital has been making use of the public sector towards its own ends . We have also seen how the industrial policy resolution of 1956 has been so diluted as to make the private sector the dominant force even in those Industries where the Government had promised to make the public sector the dominant force . We shall now proceed to study a few more industrial sectors before we conclude .
Fertilizers
The Fertilizer industry , according to the Industrial Policy Resolution of 1965 , is one of those “ to be progressively State-owned and in which the State will generally take the initiative ”. Like many other industries , this industry too became , in course of time , almost completely dependent on foreign monopolies . After the agreement , with American finance capital for the establishment of a fertilizer factory at Trombay in the public sector with American loans in the latter half of the 1950s , the Government of India - as per the promise stealthily made to the foreigners - allowed foreign capital to invade the fertilizer industry in the private sector .
This dependence on foreign monopolies , for finance and technical knowhow for increasing fertilizer production in the country , has put off installation of new capacity to use indigenous raw material which was available in plenty in our country in the form of coal . Coal-based fertilizer projects were anathema to foreign monopolies who were interested only in naphtha or liquid ammonia as raw materials since these raw materials could be had only from petroleum refineries or imported . In either case the fertilizer projects would be dependent on foreign monopolies who could dictate the prices of raw materials and later the prices of fertilizers .
Consequently , several new fertilizer projects which have been established by foreign monopoly capital in our country - such as the Coromandel Fertilisers at Visakhapatnam , the fertilizer factory at Kanpur , the socalled mixed company at Madras , the Goa Fertilisers - are a few of the most important companies which have dominated the fertilizer industry after 1960 . To attract foreign capital investment into this field , the Government “ had to climb down from its rigid policies on several counts ”. Thus , it announced a series of concessions over the financing , production and distribution of fertilizers to foreign monopolies . “ Against bitter opposition it went to the extent of ( allowing ) majority share holdings for foreign companies in this field ”. (‘ Financial Express ’, May 24 , 1969 )
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