Forms of Public Enterprises

There are four main types of public enterprises. These are discussed below.

1.Departmental form of public sector : Some public enterprises run departmentally. They are kept under an appropriate department of the govt. ,financed out of the funds allotted to the department by the legislature and are managed by civil servants belonging to that department. There are some main characteristics of this type.

a) The departmental form of P.E. is an oldest form of public enterprise.

b) The function is responsible to the government.

2. Company form of public enterprises  :- The second form of organization set up of public enterprise is that of joint stock company in its various forms. The company form of organization has been the most popular form for obvious reason. E.g. coal India Limited, Steel Authority of India are the example of company form of public enterprises.

3.Public Corporation :-Public Corporation may be defined as a legal entity created by the govt. but exterior to the govt. organization, hence financially independent for the purpose of carrying on the specified activities in a manner prescribed in the low creating it. According to Herbert Morrison, ‘’Public Corporation is a combination of public ownership, public accountability and business management for public ends.’’ E.g. ONGC, OIL etc..

4.Joint Sector :-Joint sector refers to that organization where the government and public sector works jointly. In such enterprises, the combination of capital provided by the govt. and the management technique is co-exist. The day to day activities of this enterprises are carried out by the board of directors.