Public Sector Enterprises (2)

7/24/2019 Public Sector Enterprises (2)

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PRESENTATION

SUBMITTED BY,IRPHANA.I

COMMERCE


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PUBLIC SECTOR ENTERPRISES

(FORMS OF ORGANISING PUBLIC SECTOR

ENTERPRISES)


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PUBLIC SECTOR ENTERPRISES

Public sector enterprises are those enterprises

which are owned and controlled by the

central or state governments or jointly by the

central and state governments.In every economy, business organisation

takes its origin in private sector, public sector

or joint sector. In socialistic economy, it isthe public sector that dominates.


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FEATURES OF PUBLIC SECTOR

ENTERPRISES

State ownership.

State control.

State Financing.

Socio-economic activities.

Public accountability.


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RATIONALE OF PUBLIC SECTOR;

Socialistic pattern of society.

ptimum utilisation of natural resources.

!emoval of regional imbalances.

"voidance of wasteful competition.#ermination of monopoly power.

$reation of employment opportunities.

Infrastructure facilities.

%efence re&uirements.

'asic and key industries.


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FORMS OF ORGANISING PUBLIC SECTOR

ENTERPRISES

Public sector undertakings are organised

in any one of the following forms(

). %epartmental *ndertakings.

+. Public $orporations or Statutory

$orporations.

. overnment $ompanies


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DEPARTMENTAL UNDERTAKINGS

" departmental undertaking is created

by the decision of the government. Its

activities are organised by the government

department headed by a minister. #hey haveno separate legal entity and managed by

civil servants who are government

employees and work under the control of aminister. It is an oldest and most common

form of organisation.


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Some important departmental

undertakings in India(

"ll India !adio.

%oordarshan.

Post and #elegraph.

Indian !ailways.

$hittaranjan ocomotives, $alcutta.

Integral $oach Factory, /adras.

Silver !efinery Project, $alcutta.

%iesel ocomotives, 0aranasi


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PUBLIC CORPORATIONS OR STATUTORY

CORPORATIONS

Statutory $orporation is generally created

as an autonomous institution by passing a

Special "ct in the Parliament or State

egislature."s a body corporate, it is a separate legal

entity for legal purposes and can sue and

be sued, enter into contracts, and ac&uireproperty in its own name.


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Some import!t p"#$i%%orportio!& re & "!'er

!eserve 'ank of India.#he Indian "irlines $orporation.

#he ife Insurance $orporation.

"ir India.

il and 1atural as $ommission.

*nit #rust of India.

State 'ank of India.

2erala State !oad #ransport $orporation.


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GOVERNMENT COMPANIES

Public enterprises organised under

the $ompanies "ct are government

companies. It is defined as 3a company in

which not less than 4)5 of share capital isheld by the central government or by any

state government or governments or partly

by the central government and partly by oneor more state governments6.


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Some important overnment $ompanies in

India are(

#he 7industan /achine #ools td.

#he 7industan Steel td.

#he Indian #elephone Industries td.

#he State #rading $orporation.#he 7industan Shipyard td.

#he Indian il $orporation.

'harat 8lectronics td."soka 7otels td.

/adras !efineries td.


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.

In India, the role to be played by the

public sector 9 the private sector areclearly stated by the government through

the various industrial policies formulated

from time to time and the various five year

plans. #here was a special emphasis for the

public sector in the industrial policies of

):;< 9 ):4=. /ajor policy initiatives were

taken in the form of structural reforms andthe government took the role of facilitator

for the industries.


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#7"12 >*??..

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Public Sector Enterprises (2)