This document discusses different forms of public enterprises in India. It describes departmental undertakings, which operate as part of government departments under ministerial control. It also outlines public corporations, which are established through special acts and have separate legal identities. Finally, it discusses government companies, in which the state or central government holds at least 51% ownership and which operate under the Companies Act of 1956.

1. FORMS OF PUBLIC ENTERPRISES
PRESENTED BY
S.ATSHAYA

2. DEFINITION:
 Public enterprises is an enterprises ,which is established ,owned and
financed with the tax payers money by the government;
 With the motive of not at all making profit.
 But rendering essential commodities/ services to the consumers i.e.,
public.
 In recent years , the central and state governments in India have
established many public enterprises ,hence public enterprises are
expected to play a much greater role in the coming years.

5. DEPARTMENTAL UNDERTAKING:
 Is a public enterprise ,which runs as part of govt department ,and under
the direction of minister concerned .
 This is the oldest and traditional form of running any activity by the
government and is freely extended to the state or central enterprises.

7. FEATURES:
 Formation
 The are under the direct control of minister.
 Appointments.
 Management
 Audit
 Finance
 Administrative autonomy
 Accountability

8. MERITS:
 Ease of formation
 Effective control
 Source of revenue for govt
 Proper utilisation of fund .
 Decrease in tax burden of public
 Accountability
 DEMERITS
 Rigidity
 Red Tapism
 Delay in decision making
 Lot of political interference.
 Insensitive to consumer needs.
 Unable to take advantage of opportunities.

9. PUBLIC CORPORATION:
 Public or statutory corporation become very popular as an
organisation immediately after the first world war.
 These are organisations set up by passing special act in
parliament.
 Such act defines the power ,duties , rules and regulations
,objectives etc…
 They have separate legal entity.

10. Features:
 Owned and controlled by government.
 Losses may occur at any time.
 Body corporation.
 Freedom and budget control.
 No interference.
 Appointment of employees
 Audit
 Financing ,either by state or central government.

11. MERITS:
 Financial autonomy
 Autonomous organisation
 Social service motive
 Protection of public interest
 DEMERITS:
 Political interferences.

12. GOVERNMENT COMPANY:
 The companies act of 1956 defines a government company in which not less
than 51 percent of the share capita; is held by any state or central government or
party by central governments and partly by one or more state governments.
 The capital of government company may be either subscribed entirely by the
government or partly by the government and partly by the public.
 Such company is called mixed ownership corporation.

13. FEATURES:
 Ownership –min 51% share owned by state or central government.
 Management –by board of directors
 Employees – as per rules and regulations.
 Audit-by auditor appointed by central government.
 Annual report –presented to parliament.

14. MERITS:
 Easy of formation
 Separate legal entity.
 Autonomy in operations.
 Control unhealthy competitions
 Easy financing.
 Benefits of private participation
 DEMERITS:
 Parliament interference.
 Lack of continuity in policy.