GOVERNMENT INSTITUTIONS
In the present age, in order to expedite the economic progress
of the country the government also establishes and conducts
business.
Public sector enterprises are those enterprises which are
owned, controlled and operated by the central or state government
or by both. Such enterprises are run mainly to provide service to
the public. The performance of public enterprises is discussed in
the parliament. These enterprises are generally established as
semi-autonomous or autonomous bodies. They are engaged in industrial
and commercial activities.
In India, the central and state governments have established
several public enterprises. These enterprises produce a wide variety
of goods such as iron and steel electronics, ships, aircrafts,
locomotives, heavy machinery, fertilisers, chemicals, insecticides,
drugs and consumer products. Many of the public enterprises are
very large in size employing thousands of workers and having
investment of several hundred crores of rupees.
1. Departmental Undertaking
This is considered as a department attached to the ministry
of a government. Its administration is in the hands of the chief
administrative officer of the ministry. Here the department is a
part of the government. This is the oldest form of organisation of
state enterprise. It may be run either by central government or by
the state government. Railways, B.S.N.L.,(telephones) Broad
castings like Doodharsan are the examples of Departmental
Undertakings.
2. Public Corporation
This is established under a specific statute passed in the
parliament. It is known as a statutory corporation because it is
created by a statute. The statute defines its objectives, powers and
functions. It is an autonomous body fully financed by the
government. It has a separate legal existence independent of the
government. The corporation is wholly owned by the government.
Its entire share capital is contributed by the state. Its management
is vested with a Board of Directors appointed or nominated by the
government. There is no government interference in the day to day
working of the corporation. The main object of the corporation is
to serve the public. A statutory corporation has its own staff. Its
employees are not government servants. It is fully accountable to
the parliament or state legislature. Reserve Bank of India, Life
Insurance Corporation and Unit Trust of India are the examples of
public corporation.
3. Government Company
Government Company is also established under the
Companies Act of 1956. It is a company in which not less than
51% of paid up share capital is held by the central government or
by one or more state governments or jointly by the central and state
governments. In India the Government Companies also subscribe
share capital of the Private Company ans so sometimes it is known
as mixed ownership company. It is a body corporate independent
of the government. It is managed by a Board of Directors nominated
by the government and other shareholders. Its employees are not
Government servants. They are not governed by civil service
rules.It enjoys borrowing powers. It is accountable to the ministry or
department concerned. Hindutan Steel Limited, Bharath Heavy
Electricals Limited, Maruthi Udyog are the examples of
Government Company.
4. Board Organisation
In this organisation management is carried on by a
government nominated independent Board. It has its own rules and
regulations. Tamil Nadu Electricity Board, Tamil Nadu Housing
Board, TamilNadu Water and Drainage Board are the examples of
Board Organisation.
In the present age, in order to expedite the economic progress
of the country the government also establishes and conducts
business.
Public sector enterprises are those enterprises which are
owned, controlled and operated by the central or state government
or by both. Such enterprises are run mainly to provide service to
the public. The performance of public enterprises is discussed in
the parliament. These enterprises are generally established as
semi-autonomous or autonomous bodies. They are engaged in industrial
and commercial activities.
In India, the central and state governments have established
several public enterprises. These enterprises produce a wide variety
of goods such as iron and steel electronics, ships, aircrafts,
locomotives, heavy machinery, fertilisers, chemicals, insecticides,
drugs and consumer products. Many of the public enterprises are
very large in size employing thousands of workers and having
investment of several hundred crores of rupees.
1. Departmental Undertaking
This is considered as a department attached to the ministry
of a government. Its administration is in the hands of the chief
administrative officer of the ministry. Here the department is a
part of the government. This is the oldest form of organisation of
state enterprise. It may be run either by central government or by
the state government. Railways, B.S.N.L.,(telephones) Broad
castings like Doodharsan are the examples of Departmental
Undertakings.
2. Public Corporation
This is established under a specific statute passed in the
parliament. It is known as a statutory corporation because it is
created by a statute. The statute defines its objectives, powers and
functions. It is an autonomous body fully financed by the
government. It has a separate legal existence independent of the
government. The corporation is wholly owned by the government.
Its entire share capital is contributed by the state. Its management
is vested with a Board of Directors appointed or nominated by the
government. There is no government interference in the day to day
working of the corporation. The main object of the corporation is
to serve the public. A statutory corporation has its own staff. Its
employees are not government servants. It is fully accountable to
the parliament or state legislature. Reserve Bank of India, Life
Insurance Corporation and Unit Trust of India are the examples of
public corporation.
3. Government Company
Government Company is also established under the
Companies Act of 1956. It is a company in which not less than
51% of paid up share capital is held by the central government or
by one or more state governments or jointly by the central and state
governments. In India the Government Companies also subscribe
share capital of the Private Company ans so sometimes it is known
as mixed ownership company. It is a body corporate independent
of the government. It is managed by a Board of Directors nominated
by the government and other shareholders. Its employees are not
Government servants. They are not governed by civil service
rules.It enjoys borrowing powers. It is accountable to the ministry or
department concerned. Hindutan Steel Limited, Bharath Heavy
Electricals Limited, Maruthi Udyog are the examples of
Government Company.
4. Board Organisation
In this organisation management is carried on by a
government nominated independent Board. It has its own rules and
regulations. Tamil Nadu Electricity Board, Tamil Nadu Housing
Board, TamilNadu Water and Drainage Board are the examples of
Board Organisation.
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