Public Sector
What is public sector?
The sector that is owned, managed and controlled by the government.
What is a departmental undertaking?
An enterprise that operates as a part of a government department.
What is a statutory corporation?
public enterprise created by a special Act of Parliament or State Legislature.
What is a government company?
A company in which at least 51% of the paid-up share capital is held by the Central Government, State Government, or both.
What is the main objective of public sector enterprises?
To provide essential goods and services and promote public welfare rather than only earning profit.
Who has direct control over a departmental undertaking?
The concerned government ministry or department.
Does a statutory corporation have a separate legal identity?
Yes
Under which law is a government company registered?
The Companies Act.
Name any two areas in which public sector enterprises operate
power, defence
Give one example of a departmental undertaking.
Indian Railways
Who defines the powers and functions of a statutory corporation?
The special Act under which it is created.
Does a government company have a separate legal identity?
Yes, it has a separate legal identity from the government.
Why does the government establish public sector enterprises?
To provide essential services, develop infrastructure, create employment and promote economic development.
Are the employees of a departmental undertaking government employees
Yes, they are government employees.
Why does a statutory corporation enjoy greater autonomy than a departmental undertaking?
Because it has a separate legal identity and operates according to the provisions of its special Act.
Why is a government company more flexible than a departmental undertaking?
Because it operates as a company and is not subject to the same level of departmental procedures and controls.
What are the three major forms of public sector enterprises?
Departmental Undertaking, Statutory Corporation and Government Company.
State one major advantage of a departmental undertaking.
It provides strong government control.
What is the major difference between a departmental undertaking and a statutory corporation?
A departmental undertaking is directly controlled as part of a government department, whereas a statutory corporation is a separate legal entity created by a special Act.
How is a government company different from a statutory corporation?
government company is registered under the Companies Act, whereas a statutory corporation is created by a special Act of Parliament or State Legislature.