Public Sector Enterprises in Rajasthan

Everything you need to know about the many types of government projects. Organizations that are owned, controlled, and financed by the government of a country are known as Public sector enterprises by the State government. These organizations are either managed by the state or the federal government or by local governments.Lets look at the Types of Public Sector Enterprises. They are essential to the country’s economic success. The public sector has been tasked with building infrastructure for other sectors of the economy, focusing on the critical, and providing commodities and services that are necessary to the economy. The government manages a pubic sector enterprise to maximize social welfare and uphold the public interest.

Types of Public Sector Enterprises

There are three different forms of organization used for the Types of public sector enterprises in India. These are:

 (1) Departmental Undertaking

 (2) Statutory (or Public) Corporation

 (3) Government Company.

The Departmental Undertaking form of organization is primarily used to provide essential services such as railways, postal services, broadcasting etc. Such organizations function under the overall control of a government ministry and are financed and controlled in the same way as any other government department. This form is considered suitable for activities where the government desires to control them because of the public interest.

Statutory Corporation (or public corporation) refers to a corporate body created by the Parliament or State Legislature by a special Act that defines its powers, functions and pattern of management. The statutory corporation is also known as a public corporation. The government wholly provides its capital. Examples of such organizations are the Life Insurance Corporation of India, State Trading Corporation etc.

A Government Company refers to a company in which 51 per cent or more of the paid-up capital is held by the government. It is registered under the Companies Act and is fully governed by the provisions of the Act. Most business units owned and managed by the government fall in this category.

Public sector enterprises by Union Government

In their 52nd Report, the Estimates Committee of 3rd Lok Sabha (1962-67) stressed the need for setting up a centralized coordinating unit, which could also make a continuous appraisal of the performance of public enterprises. This led to the Bureau of Public Enterprises (BPE) set up in 1965 in the Ministry of Finance. Subsequently, due to the reorganization of the Ministries/Departments of the Union Government in September 1985, BPE was made part of the Ministry of Industry. In May 1990, BPE was made a full-fledged Department known as the Department of Public Enterprises (DPE). Presently, it is part of the Ministry of Finance.

The Department of Public Sector Enterprise by Union Government Enterprises is the nodal department for all the Central Public Sector Enterprises (CPSEs) and formulates policy about CPSEs.As we have already seen types of Public Sector Enterprises. It lays down, in particular, policy guidelines on performance improvement and evaluation, autonomy and financial delegation and personnel management in CPSEs. It furthermore collects and maintains information in the form of a Public Enterprises Survey on several areas in respect of CPSEs.

Public Sector Undertaking (PSU) or a Public Sector Enterprise by the Union Government in India. These companies/units are owned by the Union Government of India, one of the many state or territorial governments, or both. There are 40 numbers of State Public Sector Undertakings (PSU) in Assam in 7 different sectors under 22 different administrative departments.

Public sector enterprises by State Government

There has been no noteworthy Committee set up for the review of the working of State PSUs at a national level, although individual States have been setting up such committees, especially since the mid-1980s. A Committee headed by Shri H.K.L.Kapoor, the then Chief Secretary, Govt. of Gujarat had carried out a broad review of the State PSUs after categorizing them into 13 groups. However, this Committee, which submitted its report to the Ministry of Home Affairs in 1977, was not able to suggest a financial goal for these categories of PSUs and the varying rates of return that should be earned by them. Public sector enterprises by the State government The Seventh Finance Commission, for the first time, mentioned the need for the State PSUs to earn a rate of return. The Eighth and Ninth Finance Commissions suggested a five-fold categorization of these enterprises to develop the targeted rates of return that these enterprises should have earned.

Conclusion

After independence, India was dealing with serious socio-economic and financial issues caused by long periods of slavery and exploitation like income gap, imbalance in regional economic development and widespread unemployment. Moreover, an insufficient weak industrial base with inadequate investments and lack of infrastructure facilities along with a lack of trained human resources or technological backwardness was crippling the basic framework of India. There are many types of Public sector enterprises. These organizations are either managed by the state or the federal government, or by local governments. They are essential to the country’s economic success. The public sector has been tasked with building infrastructure for other sectors of the economy, focusing on the critical, and providing commodities and services that are necessary to the economy.