Question

Enumerate the forms of public sector enterprises.

Answer 1

The public sector usually comprises of organisations which are operated by the government. The main motive of a public sector is public welfare. Funding is usually raised through the help of public or budgets allotted for different ministries through various levels of government. The public sector mainly comprises of 3 types of organisations:

• Departmental undertaking- It is a type of organisation which is run by a ministry or a separate department of the Government. Ex. Indian Railways
• Statutory corporation- It is an organisation formed by a special act formed by the parliament or state legislature. Ex. State Bank of India
• Government company- It is an organisation in which the government owns atleast 51% of the paid up share capital. Ex. Coal India Ltd.