7/31/2019----Public Sector Enterprises (Important for UGC NET, UPSC CSE, SSC)- Translation in Hindi, Kannada, Malayalam, Marathi,

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Public Sector Enterprises
Owned business units, managed and controlled by the central, state or local government are
termed as public sector enterprises or public enterprises, also known as public sector
undertakings.

It defined as any commercial or industrial undertaking owned and managed by the

government.

Maximize social welfare and uphold the public interest.

It consists of nationalized private sector enterprises such as:

Banks

Life Insurance Corporation of India and

New enterprises set up by the government such as:

Hindustan Machine Tools (HMT)

Gas Authority of India (GAIL)

State Trading Corporation (STC)

Nationalized Private Sector Enterprises

Characteristics of Public Enterprises

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7/31/2019----Public Sector Enterprises (Important for UGC NET, UPSC CSE, SSC)- Translation in Hindi, Kannada, Malayalam, Marathi, Punjabi,
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Characteristics of Public Enterprises

Government Ownership and Management:

Owned and managed by the central or state government or by the local authority.

Government may wholly own public enterprises or may partly be with the government and
partly with the private industrialists and the public.

For example, National Thermal Power Corporation (NTPC)

Financed from Government Funds

Get their capital from Government Funds.

Government also has to make provision for their capital in its budget.

Public Welfare

Not guided by profit motive.

Major focus is on providing the service or commodity at reasonable prices.

Provide petroleum and gas at subsidized prices to the public.

Public Utility Services

Concentrate on providing public utility services like:

Transport

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7/31/2019----Public Sector Enterprises (Important for UGC NET, UPSC CSE, SSC)- Translation in Hindi, Kannada, Malayalam, Marathi, Punjabi,
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Electricity

Telecommunication etc.

Public Accountability

Governed by public policies formulated by the government and accountable to the legislature.

Excessive Formalities

Government rules and regulations force to observe unnecessary formalities in their operations.

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