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what is public sector undertaking

These businesses are owned and operated by the Governments of the Central and the State. Main characteristics of public sector enterprises, are shown below:

1. public ownership:

State-owned enterprises, wholly owned by the Government or any State Government. For example, the Reserve Bank of India belongs to the Central Government and Delhi Transport Corporation owned by the Government of Delhi State.

2. State control:

Complete control by owner of the public sector lies with the Government.

3. maintenance of Motive:

The main purpose of an entrepreneur in the public sector is providing services to the population as a whole. In order to serve the public, he may even incur losses. For example, the Food Corporation of India provides food grains to the public at discounted prices.

4. public finance:

The Government provides capital and funds through the appropriations of the Government budget may also provide loans from time to time from the State Treasury.

5. bureaucratic management:

Public sector bureaucratic management, in the sense that their activities are regulated by the rules and regulations established by the Government.

6. social responsibility:

Businesses public sector accountable to the general public for their performance and results. annual audit of these enterprises is Comptroller and Auditor General of India. In addition, the annual reports to be discussed in Parliament or in the State legislature.

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