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PUBLIC SECTOR PRIVATE SECTOR CO-OPERATIVE SECTOR

PUBLIC SECTOR PRIVATE SECTOR CO-OPERATIVE SECTOR. “ A public enterprise is an organisation which is: — owned by public authorities including Central, State or local authorities, to the extent of 50 per cent or more;

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PUBLIC SECTOR PRIVATE SECTOR CO-OPERATIVE SECTOR

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  1. PUBLIC SECTOR PRIVATE SECTORCO-OPERATIVE SECTOR

  2. “A public enterprise is an organisation which is: — owned by public authorities including Central, State or local authorities, to the extent of 50 per cent or more; — is under the top managerial control of the owning public authorities, such public control including, the right to appoint top management and to formulate critical policy decisions; — is established for the achievement of a definite set of public purpose, — is engaged in activities of a business character

  3. PUBLIC SECTOR IN INDIA • The commencement of planning witnessed a substantial growth and expansion of the public sector in India. • A significant feature of the public sector investment is the predominance of investment in few crucial sectors, namely, • steel • minerals and metals • petroleum • coal • chemicals • fertilizers.

  4. Objectives of PSUs: • Help in the rapid economic growth and industrialisation of the country • Earn returns on investment and thus generate resources for development; • Promote redistribution of income and wealth; • Create employment opportunities; • Promote balanced regional development; • Assist the development of small-scale industries; • Promote import substitution, and save foreign exchange for the economy; • Put up an effective competition to undertakings in the private sector

  5. PROBLEMS OF PSU’s • The performance of many public enterprises has been far from satisfactory. • A number of problems including • allocation of resources, • delays in the filling up of top-level posts, • tight regulations and procedures for investment and • restrictions on functional autonomy of the enterprises, etc. have for long been noticed as serious constraints on PSE operational efficiency.

  6. PRIVATE SECTOR • The private sector, too, has an important role to play. Indeed, it is because of the appreciation of the positive role the private sector can play, and certain limitations of the public sector, that many socialists advocate a mixed economic system. • The private sector has been dominant in most of the consumer goods industries. It plays an important role in a number of capital goods industries, too. • In a number of important industries, it functions side by side with the public sector.

  7. JOINT SECTOR • The term jointsector refers to the enterprise owned and managed jointly by the private sector and the government/public sector undertakings. • Industrial investment corporations and industrial development corporations in a number of states have actively promoted joint sector enterprises. • In a number of these cases, 26 per cent of the equity is held by the SIDC, 25 per cent by private promoter(s) and 49 per cent of the shares are offered to the public.

  8. Rationale of Joint Sector 1. Curbing Concentration of Economic Power 2. Social Control of Industry 3. Acceleration of Economic Development 4. Promotion of Mixed Economy 5. Broadbasing of Entrepreneurship

  9. CO-OPERATIVE SECTOR • The important objectives of the development of the co-operative sector are • prevention of concentration of economic power, • wider dispersal of ownership of productive resources, • active involvement of people in development programmes, • augmentation of the productive resources and • speedier economic development, liquidation of unemployment and poverty, etc. • The co-operative idea took a concrete shape in India for the first time in 1904, when the Co-operative Credit Societies Act — a measure designed to combat rural indebtedness and provide for the registration of credit societies — was passed.

  10. The Indian Farmers Fertilizers Co-operative Ltd (IFFCO) is a unique venture in the field of large scale fertilizer manufacture • National Agricultural Co-operative Marketing Federation(NAFED) promotes inter state and export trade of farm produce

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