Discussing a small idea regarding the government enterprises AND its various forms.

2. SHANSON SHAJI
M.A.ECONOMICS
15-PEC-25
LOYOLA COLLEGE ,CHENNAI

3. INTRODUCTION
Public enterprises is an enterprises,
which is established, owned and financed
with the tax payers money by the government ;
with the motive of not at all making profit,
But rending essential commodities/services to the
consumers i.e., public.
It is also called as Statuary corporation

4. CONCEPT OF PUBLIC ENTERPRISES
Public enterprise is an organization which is owned, managed and
controlled by the government. It is necessary for the active participation
of government in individual and commercial level. It is financed and
operated by the government. It provides service to the public. It provides
goods and services to the public at reasonable price. It is guide by service
motive but it can earn nominal profit. It helps in maintaining the state of
ownership and operation of industrial, agricultural, financial and
commercial undertaking. It is one autonomous body which is managed
and owned by government and which provide goods/ services for public.

5. CHARACTERSTICS OF PUBLIC ENTERPRISES
ADVANTAGES OF PUBLIC ENTERPRISES
DISADVANGES OF PUBLIC ENTERPRISES
PUBLIC UNDERTAKINGS IN INDIA

6. CHARACTERSTICSOFPUBLIC ENTERPRISES
Government ownership: It is totally owned by government. Its majority shares are taken up by the
government. In this enterprise, sometimes 50% of share is owned by the government.
Government management and control: It is one autonomous body which is managed and owned by
government. Government controls and manages organization by appointing key personnel. It is like
board of directors, managing directors, chairman and so on which manage the appointing, transfer of
members and so on.
Public accountability: They are operated by government fund. It is also accountable to general public.
It is carried out by the parliament and helps in providing goods and services for public.
Service motive: It provides service to the public. It provides goods and services to the public at
reasonable price. It is guide by service motive but it can earn nominal profit.
Autonomous: It is one autonomous body which is managed and owned by government. It receives fund
from the government. But government doesn’t interfere in the day to day activities of the organization.
Monopoly: Government has monopoly in this sector.
Separate legal entity: It is established under acts and is rum under a law. It can purchase and sell
securities, can enter into any contract, can sue and can be sued.
Stability: It is generally stable and perpetual in nature.

7. ADVANTAGES OF…….
PUBLIC ENTERPRISES
Provision of more employment
Even distribution of amenities
Access to more capital.
Continuity
Prevention of essential services
Filling the gap where private enterprises is unstable
/difficulty to engage.

8. DISADVANGES OF…….
PUBLIC ENTERPRISES
INEFFIENCY
DELAY IN DECISION MAKING
GOVERNMENT INTERVENTION
FREQUENT CHANGES IN BROAD MEMBER

9. PUBLIC UNDERTAKINGS
IN
INDIA

10. 1. DEPARTMENTORGANISATION
2. PUBLIC COPERATION
3. GOVERNMENTCOMPANIES

11. JointEnterprise
State participation in an economic activity along with the private sector has led
to the creation of a specific type of organisational form, which is known as joint
enterprise.
Public sectorundertakings:
Factors responsible for the emergence of Joint Enterprises
1. Government's will to set up joint enterprises with private sector may bein
eitherof the following situations:
(a) Lack of initiative to participate in the private enterprises which can be
secured by government's participation; or
(b) Government wants to conserve its limited resources and invite private
capital so that the government can extend its coverage to more fields in the
public sector.

12. 2. Thegovernment's decision to enterintopartialownershipof agoing privateenterprisemay
occurin thefollowingsituations:
(a) For conversion of loans of the private sector into equity capital
(b) For regulating the monopolistic operations or public interest potentials of a
private enterprise;
(c) For overcoming the 'sickness' or 'mismanagement' of a private enterprise
(d) For governing profit in case of a private enterprise;
(e) For continuation of previous management, in case of nationalisation of
private enterprise; and
(f) For limiting cost compensation, in case of nationalisation of foreign private
enterprise. There has been a progressive increase in the number of joint
enterprises the world over, especially in the wake of privatisation wave.

13. Development Corporation
It is difficult to exactly define 'Development Corporation'. On the basis of
empirical evidence world over, especially in the developing countries, it may
signify an autonomous agency in the public sector, primarily to promote, rather
than to operate, economic activities through a system of subsidizing. The
promotional activity of a Development Corporation is as follows:-
(1) It promotes an activity which otherwise might not come into existence.
(2) It accelerates an activity which otherwise would materialize at a slow pace in
small outputs and in a sect orally unbalanced manner.
(3) It promotes a desired pattern of economic activity, meaning thereby the
expansion of desired sector of activity, promotion of units of desired sizes,
attainment of desired balance of payments, development of certain economic
activity in the desired region, etc.

14. SHANSON SHAJI
15-PEC-25