Meaning of Public Enterprises
MEANING OF PUBLIC ENTERPRISES
As state earlier, the business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises. These are also known as public sector undertakings.
A public sector enterprise may be defined as any commercial or industrial undertaking owned and managed by the government with a view to maximize social welfare and uphold the public interest.
Public enterprises consist of nationalized private sector enterprises, such as, banks, Life Insurance Corporation of India and the new enterprises set up by the government such as Hindustan Machine Tools (HMT), Gas Authority of India (GAIL), State Trading Corporation (STC) etc.
CHARACTERISTICS OF PUBLIC ENTERPRISES
Looking at the nature of the public enterprises their basic characteristics can be summarized as follows: A. State control: The public enterprises are financed, owned and managed by the government may be a central or state government. B. Rendering service: The primary objective of the establishment of public enterprises is to serve the public at large by supplying the essential goods at a reasonable price and creating employment opportunities. C. Government Ownership and Management: The public enterprises are owned and managed by the central or state government, or by the local authority. The government may either wholly own the public enterprises or the ownership may partly be with the government and partly with the private industrialists and the public. Autonomous or semi-autonomous organization: Public enterprise is an autonomous or semi-autonomous organization because some enterprises work under the direct control of the government and some organizations are established under statutes and companies act.
D. Financed from Government Funds: The public enterprises get their capital from Government Funds and the government has to make provision for their capital in its budget, they become financially
As state earlier, the business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises. These are also known as public sector undertakings.
A public sector enterprise may be defined as any commercial or industrial undertaking owned and managed by the government with a view to maximize social welfare and uphold the public interest.
Public enterprises consist of nationalized private sector enterprises, such as, banks, Life Insurance Corporation of India and the new enterprises set up by the government such as Hindustan Machine Tools (HMT), Gas Authority of India (GAIL), State Trading Corporation (STC) etc.
CHARACTERISTICS OF PUBLIC ENTERPRISES
Looking at the nature of the public enterprises their basic characteristics can be summarized as follows: A. State control: The public enterprises are financed, owned and managed by the government may be a central or state government. B. Rendering service: The primary objective of the establishment of public enterprises is to serve the public at large by supplying the essential goods at a reasonable price and creating employment opportunities. C. Government Ownership and Management: The public enterprises are owned and managed by the central or state government, or by the local authority. The government may either wholly own the public enterprises or the ownership may partly be with the government and partly with the private industrialists and the public. Autonomous or semi-autonomous organization: Public enterprise is an autonomous or semi-autonomous organization because some enterprises work under the direct control of the government and some organizations are established under statutes and companies act.
D. Financed from Government Funds: The public enterprises get their capital from Government Funds and the government has to make provision for their capital in its budget, they become financially