Updated By: LatestGKGS Desk
Forms Of Public Sector Undertakings In India
Forms Of Public Sector Undertakings In India And Importance
Public Sector Enterprises:- Where the government (central or state or both) hold at least 51% of the shares. Its forms of organization are Departments, Corporations, Company, Joint Venture, Development Corporation.
Central Public Sector Enterprises:- Classified into Strategic and Non-Strategic. Their areas are Arms and Ammunitions and allied items of defense equipment, defense aircraft, and warships. Atomic energy (except in the areas related to the operation of nuclear power and radiation applications and radio-isotopes for agriculture, medicine, and non-strategic industries)
Public Sector Banks:- Banks where the government holds more than 50% or majority stake.
Section 25 Companies:- Public Sector Enterprises have rights to goods to promote commerce, art, science, religion, charity or any other useful purpose and not having any profit motive can be registered as the non-profit company under section 25 of the Companies Act, 1956.
This section empowers the Central Government to grant a license directing that such an association may be registered as a company with limited liability, without the addition of the words Limited or Private Limited to its name.
Such companies are also called as the Non-profit or 'No Profit - No Loss' companies.
