PUBLIC ECONOMICS SEMINAR 2016-17TOPIC:-FORMS OF PUBLIC ENTERPRISE

WELCOME TO ALL…….

SHANSON SHAJI

M.A.ECONOMICS

15-PEC-25

LOYOLA COLLEGE ,CHENNAI

INTRODUCTIONPublic 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 theconsumers i.e., public.It is also called as Statuary corporation

CONCEPT OF PUBLIC ENTERPRISESPublic 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.

CHARACTERSTICS OF PUBLIC ENTERPRISESADVANTAGES OF PUBLIC ENTERPRISESDISADVANGES OF PUBLIC ENTERPRISESPUBLIC UNDERTAKINGS IN INDIA

CHARACTERSTICS OF PUBLIC 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.

ADVANTAGES OF……. PUBLIC ENTERPRISESProvision of more employmentEven distribution of amenitiesAccess to more capital.ContinuityPrevention of essential servicesFilling the gap where private enterprises is unstable /difficulty to engage.

DISADVANGES OF……. PUBLIC ENTERPRISESINEFFIENCYDELAY IN DECISION MAKINGGOVERNMENT INTERVENTIONFREQUENT CHANGES IN BROAD MEMBER

PUBLIC UNDERTAKINGS

IN INDIA

1. DEPARTMENT ORGANISATION

2. PUBLIC COPERATION 3. GOVERNMENT

COMPANIES

Joint EnterpriseState 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 sector undertakings:Factors responsible for the emergence of Joint Enterprises

1.Government's will to set up joint enterprises with private sector may be in either of 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.

2. The government's decision to enter into partial ownership of a going private enterprise may occur in the following situations:(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.

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.

THANK YOUSHANSON SHAJI15-PEC-25