Question

Name the three types of Public Sector in India.

Answer 1

Public enterprises may be of three types:

1. Departmental Enterprises: Departmental enterprises are those enterprises which are owned, managed and controlled by the government departments, such as railways, post and telegraph, the Integral Coach Factory of Perambur, defence manufacturing, etc. Departmental enterprises are organised, financed and controlled in the same way as any other department in the government. They get their finances from the government budget. The revenue earned by these enterprises goes to the Government exchequer. The employees of these enterprises are considered as government employees. In fact, they themselves are part of the government machinery. 
2. Statutory Undertakings: These undertakings are set up under separate acts of Parliament. The government does not interfere in their day-to-day operations, although the managers or the top executives of these organisations are appointed by the government. In the matter of mobilisation of resources, these organisations can take the help of the government as well as that of the public at large. Food Corporation of India, the Life Insurance Corporation, Oil and Natural Gas Corporation etc., are examples of such kind of public enterprises.
3. Public Sector Companies: When a company is registered as a joint stock company but the government holds most of the shares, (more than 59%) it is called a public sector company. It is formed just like a private company. The provisions of Indian Companies Act 1956 are applicable to it. A government company is managed by a board of directors appointed by the government. Bharat Sanchar Nigam Limited, Steel Authority India Limited, Coal India Ltd, etc., are examples of public sector companies in India.