CHAPTER 16

Capital Budgeting of Indian PSUs

The Present Chapter

It discusses the capital budgeting practices in public sector undertakings in India on case basis, viz. Vizag Steel and ONGC.

Introduction

Businesses look for opportunities that increase their share holders’ value. In capital budgeting, the managers try to figure out investment opportunities that are worth more to the business than they cost to acquire. Ideally, firms should pursue all such projects that have good potential to increase the business worth. Since the available amount of capital at any given time is limited; therefore, it restricts the management to pick out only certain projects by using capital budgeting techniques which has potential to yield the most return over ...

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