What are the forms of organisation in public enterprises?

Forms of Organization in Public Enterprises

Public enterprises are organizations that are owned and operated by the government. They serve various purposes, such as providing essential services, promoting economic development, and generating revenue for the government. There are several forms of organization in public enterprises, each with its own characteristics and objectives:

1. Departmental Undertaking: In this form, the public enterprise is organized as a government department and is directly under the control of a government ministry or department. The departmental undertaking is funded through the government budget and operates according to government rules and regulations. Examples include the Indian Railways and the Postal Services.

2. Public Corporation: A public corporation is a separate legal entity established by the government to perform specific functions or provide specific services. It has its own board of directors and operates with a degree of autonomy from the government. Examples include Air India and ONGC.

3. Government Company: A government company is a company in which the government holds a majority stake (more than 50% of the shares). It is registered under the Companies Act and operates as a commercial entity, with its own board of directors and management. Examples include BHEL and NTPC.

4. Statutory Corporation: A statutory corporation is a public enterprise established by an Act of Parliament or state legislature. It operates with a degree of autonomy and has its own board of directors. Examples include LIC and SAIL.

5. Mixed Ownership Enterprise: In this form, the government and private sector both hold shares in the enterprise. It operates as a joint venture between the government and private investors, with the government usually holding a controlling stake. Examples include Maruti Suzuki and Hindustan Zinc Limited.

Note on Forms of Organization in Public Enterprises

Public enterprises play a crucial role in the economy by providing essential services, promoting economic development, and generating revenue for the government. The forms of organization in public enterprises vary depending on the nature of the enterprise, its objectives, and the level of autonomy required. Each form has its own advantages and disadvantages, and the choice of form depends on various factors such as the nature of the business, the level of government control desired, and the need for flexibility and efficiency in operations.