PRIVATE PUBLIC

AND GLOBAL
ENTERPRISES

 Role Of Public
Sector

 Public sector occupied a worthy place for achieving
systematic and planned development in a developing
country like India.

 In India private sector was not in a position to make

necessary effort for the development of its various
sectors simultaneously.

 The public sector offered the necessary minimum

push for bringing the economy to a path of self
sustained growth.

 Thus it is now well recognized that public sector

plays a positive role in the industrial development
of the country.
 Role Of Private
Sector

 The most dominant sector of India, i.e.,
agriculture and other allied activities like
dairying, animal husbandry, poultry etc. is
totally under the control of the private sector.

 Moreover, the major portion of the industrial

sector engaged in the non-strategic and light
areas, producing various consumer.

 Moreover, the major portion of the

transportation, especially in the road transport is
also managed by the private sector.
 Forms Or Types Of
Public Sector Enterprises

Public Organizations can be classified
into three forms:
(i) . Departmental Undertakings
(ii) . Statutory Corporations
(iii). Government company
 Departmental
Undertakings

This is the oldest form of public
sector enterprises.
 The departmental undertaking is
considered as one of the departments of
government.
 It has no separate existence other than
government. It functions under the
overall control of one ministry or
department of government.
 For example, Railways, Defense, Post
and Telegraph, Broadcasting, Telephone
services, etc.
Features of Departmental
Undertakings

The main characteristics of departmental
undertakings are :
 1. They are financed from the annual budgets of the
government.
 2. The revenues of departmental undertakings are deposited in
the treasury of government.
 3. The staff of departmental undertakings are civil servants and
are recruited and compensated as per the rules of civil servants.
 4. They are under the direct control of departmental head, who
is accountable to the concerned minister.
 Merits or demerits of
Departmental Undertakings

MERITS:
I. Easy Formation
II. Accountability
III. Public Revenue
IV. Secrecy
V. Optimum utilisation of funds

DEMERITS:
VI. Inflexibility
VII. Lack of Motivation
VIII.Lack of Financial Autonomy
IX. Inefficient Management
X. Red Tapism and Bureaucracy
 Statutory
Corporations

 A Public Corporation/Statutory
Corporation is a body corporate
formed by a special Act of
Parliament or by the central or state
legislature.
 It is financed by the government
and it can arrange its own fund also.
 For example, Indian Airlines, Air
India, State Bank of India, Life
Insurance Corporation of India,
Food Corporation of India. Oil and
Natural Gas Corporation, etc.
Features of Statutory Corporations

 The powers , objectives and limitations of
public corporation are defined in the Act only.
 Operates under total control of Central or
State government.
 It is managed by board by Board of directors
nominated by government.
 The Public Corporations has it’s own rules
and regulations for Recruitment and
Remuneration for it’s staff and employees.
 The Accounts of Statutory Corporations are
audited by Comptroller and Auditor General.
Merits and Demerits of
Public Corporation

MERITS:
 Quick Decisions
 Service Motive
 Efficient Staff
 Professional Management
DEMERITS:
 Lack of Initiative
 Rigid Structure
 Unfair Practices
 So-Much government Interference
 GOVERNMENT
COMPANIES

 Government Company means a any company in
which at-least 51% paid-up share capital is held by
the central or state government or partially by both
in some ratio.
 These Government Companies are governed by the
provisions of the COMPANIES ACT,2013
 FOR EXAMPLE:
• SAIL(Steel Authority Of India)
• State Trading Corporations
• HINDUSTHAN MACHINE TOOLS
 GOVERNMENT
COMPANIES

 Government Company means a any company
in which at-least 51% paid-up share capital is
held by the central or state government or
partially by both in some ratio.
 These Government Companies are governed
by the provisions of the COMPANIES
ACT,2013
 FOR EXAMPLE:
• SAIL(Steel Authority Of India)
• State Trading Corporations
• Hindustan Machine Tools
Features Of Government Companies

 The government company is managed by Board of
Directors who are nominated by the government.
 Separate Legal Entity
 A Government Company is subject to ministerial
control
 It is free to use it’s revenue for the growth and
expansion of the Business.
 The Government Companies can independently
recruitment and the remuneration of it’s employees.
 The Government Companies are ACCOUNTABLE
to the ministry concerned.
Merits And Demerits Of
Government Company

 MERITS:
• Administrative Autonomy
• Greater Flexibility
• Efficient Staff
• Collaboration
 DEMERITS:
• Autonomy on paper only
• Political Interference
• Board packed with Government Representatives
Multinational
Companies

 Multinational Consists Of Two Words
‘Multi’ And ‘National’
 Thus it means A company operating in
more than one country.
 Multinational corporations are those
companies who incorporate themselves in
their own (work) country.
 But operate their business in many other
countries through a network of their
branches, subsidiaries etc.
 For e.g.: Coca-Cola, Sony, L.G., Samsung.
Features of MNC’s

 GIANT SIZE AND HUGE CAPITAL
RESOURCE
 CENTRALISED CONTROL
 ADVANCED TECHNOLOGY
 EXPANSION OF MARKET TERRITORY
 OLIGOPOLISTIC POWERS
 PRODUCT INNOVATION
 MARKETING STRATAGIES
 PUBLIC,PRIVATE
PARTNERSHIP

IT DESCRIBES A GOVERNMENT
SERVICE OR PRIVATE BUSINESS
VENTURE .
WHICH IS FUNDED AND
OPERATED THROUGH A
PARTNERSHIP OF GOVERNMENT
AND PRIVATE ENTERPRISE.
THSE ARE ALSO REFFERED AS
P3,PPP,P3.
 FEATURES OF PPP

 THE PUBLIC