Question

what are the 10 features of public enterprises with explanation

Answer 1

Hey here is your answer,
Special features of Public enterprises in India :

1. Newness :

In most of the countries, including India, the history of public enterprises is rather new. It is for the first time that the state has entered into industrial activity and business of such a large number and varied types.

2. Largeness :

Many public enterprises are usually vast in size. The amount of capital invested is gigantic. They employ a large number of employees. In instances like that of life insurance, they affect a vast number of people. The Railways, Post & Telegraph etc. affect almost the whole nation. In the supply of steel, coal, petroleum, etc., their effect on the entire economy is stupendous.

3. Established within a Short Period
Another feature of the state enterprises is that their scope and numbers have grown rather within a short span of time. Thus in 1951 there were only 5 central public undertakings. During the First Plan their number increased to 21. But during the second Plan their number went on rising very fast. The total volume of investment also went up from a mere Rs. 29 crores to about Rs. 30,000 crores today.

4. Varied Methods of Management :

In India the state has entered into the economic arena on a wide scale. This has led to “a great deal of experimentation in the form, content, and methodology of manage­ment.” India has adopted diverse organizational patterns.

5. Maximization of Social Welfare :

One of the important objec­tives of public enterprises in India has been the establishment of a socialist pattern of society (although at present the term seems to have fallen on bad days!). The state, therefore, had to assume direct responsi­bility for the development of industries over a wide area. The idea behind such extension of the public enterprises was maximization of social gain. The state enterprises, as the ‘ principal agency of the state, have to take on heavy responsibilities in this respect.

6. Agent for Economic Growth :

Public sector enterprises were ex­pected to usher in rapid industrial development in the country. They were supposed to act as a catalyst in the process of economic development.

7. Indigenous Pattern :
The growth of public enterprises in India did not copy any foreign pattern. It was not based on any preconceived doctrine of social and economic change. Their operation, organization and management were based on the requirements and traditions, of the country. These went on changing with changing circumstances.

8. No Uniform Price Policy :
Any product produced in the private sector is sold at a profit. But profit making is not the only objective of a public enterprise.

9. Incurring Losses :
Although it may sound ridiculous, another feature of public enterprises (central as well as state) in India is the propensity to incur losses. This trend has been going on since the last three decades, almost except for a few years during the seventies. The number of losing concerns also is on the rise.

10. Democratic Nature :
According to R. K. Jain, the concept of democracy is an essential element in the concept of public sector. State enterprises aim at the promotion of welfare of workers and the establishment of an industrial democracy.

Answer 2

Features of Public enterprises:

The following are some features of public enterprises:

• State ownership: A public enterprise is exclusively possessed by the Central Government or State Government(s) or local authority or mutually possessed by two or more of them, in case the enterprise is possessed both by the Government and private sector, the State must have at least 51 percent share in possession.

• State Control: The crucial control of a public enterprise lies with the Government which employs its Board of Directors and the Chief Executive.

           

• Government financing: The entire or a chief portion of the   investment of a public enterprise is delivered by the Government.

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