Question : CONCEPT OF ECONOMIC VALUE ADDITION



(a) whether the Government are aware of the concept of Economic Value Added (EVA) referred to in the document prepared by the Standing Conference of Public Enterprises (SCOPE) in association with the Centre for Industrial and Economic Research entitled Comparative Performance of the Public Sector and Private Sector in India;

(b) If so, whether the Government subscribes to the validity of the concept of EVA;

(c) If not, the reasons therefor; and

(d) The EVA for each of the Central Public Sector Undertakings for successive years since 1990-91?

Answer given by the minister


THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES ( DR. VALLABHBHAI KATHIRIA )

(a) Yes, Sir.

(b) EVA is a relatively a new concept to measure the efficiency of capital employed and is yet to gain wide usage.

(c) & (d) Do not arise.