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Decision-making in the public sector (英语)

A case study of the management and promotion processes involved in the manufacture of Swaraj tractors in India reveals the extremely complex nature of decision making related to publicly controlled enterprises. Changes in the central government resulted in a lack of high-level backing for domestic production, and the project was given to a state corporation. Financial and production impetus for the first tractors was supported. However, lack of faith on the part of IDBI in the financial solvency of the joint state/IDBI project resulted in the commissioning of an appraisal team that raised critical questions concerning farmers preferences, production designs and procurement, the possibility of a market glut, farm credit potential, and a tight construction schedule. Nevertheless, financing was approved by IDBI and plant construction began in 1972. The successful Swaraj model raises questions concerning the central government's unwillingness to sponsor the project, the state's willingness to sponsor it, and the ability of the cosponsors to adapt modern technology in a developing country. 31 references.

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