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business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises

Private sector did not take interest in areas where the gestation period was long, investment was heavy and the profit margin was low government is better capable of controlling the greatest brains by virtue of the stability and status government can stand losses in one direction and cover them from gains in another government can float an undertaking on the principle of minimum profits, or on a no-loss basis

The public sector plays a very important role in the development of the Indian economy characterized by the dearth of capital, entrepreneurship and technology
maximize social welfare and uphold the public interest

The public sector enterprises had a multitude of objectives:

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To help in rapid economic growth and industrialization of the country and create the necessary infrastructure for economic development To earn return on investment and generate resources for development To promote redistribution of income and wealth To create employment opportunities To promote balanced regional development To assist the development of small scale industry and ancillary industries

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Protecting public interests Earn profit

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1948-industrialisation 1956-primary role of state 1973-investment from outside permitted 1977-small-scale, tiny and cottage industries 1980-promote competition in domestic market 1991-LPG

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Planning and Development Planning Commission FYPs

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Estimates Committee (3rd Lok Sabha) Bureau of PEs (1965) DPE-1990 (Min. of HI & PE) laying down policy guidelines on performance improvement and evaluation, financial accounting, personnel management Five constituent Divisions,
the Financial Policy Division, the Management Policy Division, the MOU Division, the Administration & Coordination Division and Permanent Machinery of Arbitration

Maharatna Navaratna Miniratna

x Cat-1 x Cat-2

In 2009, the government established the Maharatna status, which raises a company's investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project Having Navratna status. Listed on Indian stock exchange with minimum prescribed public shareholding under SEBI regulations. An average annual turnover of more than Rs. 20,000 crore during the last 3 years An average annual net worth of more than Rs. 10,000 crore during the last 3 years An average annual net profit after tax of more than Rs. 2500 crore during the last 3 years Should have significant global presence/international operations

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Navratna was the title given originally to nine Public Sector Enterprises (PSEs), identified by the Government of India in 1997

made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years made profits for the last three years continuously and should have a positive net worth

Departmental Undertakings Statutory (Public) Corporation Government Company

Function under the overall control of a ministry of the Government and are financed and controlled in the same way as any other government department

a corporate body created by the Parliament or State Legislature by a special Act which define its powers, functions and pattern of management

company in which 51 percent or more of the paid up capital is held by the government. It is registered under the Companies Act and is fully governed by the provisions of the Act

Features Merits Limitations

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