Public Sector Organizations:
There are two types of public sector organizations, i.e. either the Government fully finances them through the revenues they raise by collection taxes, duties, fees, etc. of the government holds more than 51% of the total share capital of the company which comes under various ministries. The enterprises are established with service motive.
It is the largest sector, which works for the upliftment of the people by providing the following services to the people : Postal services , Railway services , Providing security, education and health facilities at low cost, and generation of employment opportunities, etc..
Organs of public sector:
1. Administration by a Government Department
It is very common almost in all countries.
Example - Post and Telegraph, Railways, Port Trust, Irrigation Projects on India etc.,
2. The Joint sector companies:
It is governed by a company law and controlled by the Government as principal major share holders. Example - Indian Oil Petronas pvt ltd, Indian Oil Sky tanking Limited. Ratnagiri Gas and Power Private Limited, Indian Synthetic Rubber Limited.
3. Public Corporation :
This type of organization is the establishment of public corporation by the state of the parliament of legislature. Example - LIC, Air India, The Reserve bank of India, Electricity Board
Classification of Industries
1. The public sector in India owes its origin in the 1956 Industrial policy resolution of the Government of India. This 1956 resolution classified industries into three categories. The Industries which would be exclusively owned by the state are referred to as Schedule-A
2. The industries in which the private sector could supplement the efforts of the state sector, with the state taking the sole responsibility for starting new units which are specific in Schedule-B.
3. The remaining industries which were in the private sector are mentioned in Schedule-C