Public Enterprise is an autonomous or semi-autonomous corporation that is controlled by the State or National Government. These enterprises came into existence to help people of the state in their commercial and industrial activities and usually focuses on areas of development and areas of public interest demanding a huge amount of capital.
Objectives of Establishing a Public Enterprise
i) Development of backward Areas
ii) Employment Generation
iii) Economic Surplus
iv) Consumer Welfare
v) Public utilities
Forms of Public Enterprise
This is the oldest form of Public Sector Enterprises. The Departmental Undertaking is considered as one of the departments of government. It has no separate existence than the Government. It functions under the overall control of one Ministry or Department of Government.
A Statutory Corporation is a body corporate formed by a special Act of Parliament or by the Central or State Legislature. It is fully financed by the Government. Its powers, objects, limitations etc. are also decided by the Act of the Legislature.
The company in which a majority of Paid-up Share Capital is held by the Central or State Government or partly by Central or State Government is called Government Company. The public may or may not be allowed to invest in these companies.