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Synopsis In the era of globalisation and liberalisation public sector management is facing number of challenges so as to improve the performance of public sector enterprises. Though public sector has helped in infrastructure development laying the industrial base promoting balanced regional growth and development of backward areas, still there are number of short comings in the functioning of various public sector undertakings. The state level public enterprises in India suffer from lack of proper marketing management, lack of optimum utilisation of resources, proper financial management and poor labour management relations. A large number of state sector undertakings suffer from lingering losses. In the present age of competition their survival is in question. Hence, in order to find out their basic problems and working out their commercial viability, this study of 'Performance Evaluation of State Enterprises' will be an eye opener for those who are managing the affairs of public sector undertakings. This study has implications for policy planners in the Government, and is useful for researchers, students of management, business managers and all those who are connected with the functioning of the state level public undertakings.