UNIT 14 PUBLIC, PRIVATE, JOINT AND

COOPERATIVE SECTORS

14.1 Introduction
14.2 The Public Sector
14.2.1 Role of Public Sector
1422 Growth and Achievements of Public Sector in India
14.2.3 Drawbacks and Limitations
14.3 The Private Sector
14.3.1 Growth and Contributions of Private Sector
14.3.2 Disadvantages and Limitations
14.4 The Joint Sector
14.4.1 Role and Advantages o f Jo int Sector
14.4.2 Limitations and Disadvanta~ges
14.5 The Cooperative Sector
14.5.1 Objectives o f Cooperative Sector
14.5.2 Growth and Limitations
14.6 LetUsSumUp
14.7 Key Words
14.8 Some Usehl Books and References
14.9 Answers or Hints to Check Your Progress Exercises

14.0 OBJECTIVES
After reading this unit, you will be able to:
understand what public, private,joint, and cooperative sectors are;
learn the kinds of roles envisaged for them in India;
put all the sectors on a comparative plane; ,md
appreciate their relevance in the changing scenario.

14.1 INTRODUCTION
Economic activities, such as the production and dish bution of goods and services,
take place broadly in four sectors, namely public scxtc)r, private sector,joint sector,
and cooperative sector. Different countries have placed differentemphasis on these
sectors in different periods of their economic history. Due to various economic
reasons, production and delivery of certain goods and sewices are deliberatelykept
aside for partibular sectors. Econo~micreasons apart, ideological overtones of the
existingregime also determinethe division of ecr~nornicactivities into various sectors.
Though there is no watertight compartment that a particular industry has to be within
the purview of a particular sector, certain industries or activitieshave traditionally
been with public sectors because of lack o'f interest from the privateprties.
Objectives, roles, and limitations of various sectors are discussed below.
14.2 THE PUBLIC SECTOR
Any organisation that is under government oumership and control are called public
sector units. Here, public means the govenmt:nt and not the general public. On the
basis of the way they are created, and the flexib ility and autonomy provided to them,
public sector units are divided into 'Departmer ltal Undertakings' (or Departments),
'Corporations', and 'Companies'. For example, anything, which is directly under
the ownership, control, and management of glovernment, such as railways, post &
telegraph, atomic power, etc. are called 'departments'. Likewise, any public
undertakings, which have been formed by tht :special act of the parliament or state
legislatures, are called 'corporations'. Some cbf the examples ofpublic corporations
are Life Insurance Corporation of India, Indl st rial Financial Corporation of India,
Darnodar Valley Corporation, Oil & Natural C3as Commission, etc. Lastly, the public
undertakings, which are formed under the Companies' Act, 1956, like any other
companies, are called government companies. According to this Act. a government
company is that in which not less than 5 1% of 'paid-up share capital is owned by the
Central government, or by any State Governml ent or Governments, or jointly by the
Central and State Governments. Examples oi 'government companies are Bharat
Heavy Electricals Limited, Madras Refinexies Ltd., Gujarat State Fertiliser
Corporation Ltd., etc. They are run like any other private coinpanies. The term
"public enterprises" usually refer to non-depa~trnental undertakings, which include
corporations as well, companies. Depending,on which government is the owner,
organisationsin public sector can be categori5 ;ed as central public enterprises, state
public enterprises, and local public enterprisers (enterprises owned and managed by
local government).
It is important to note that there is a differemce between the 'public sector' and
'public limited' companies.Public sector, as r nentioned earlier, must have ownership
and control by general government.For exan ~ple,all government owned companies
are called public sector units, whereas an! publicly held unit where owners' or
stock holders' liability is limited by the am(~ u nof
t share owned, are called 'public
limited company'.
Check Your Progress 1
1) Define Public Sector?
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2) Give five examples of pq'olic corporatio ns (two at Central Government level

and three at State level)?
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 Public, Private,
3) What is the differencebetween a 'public sector' company and a 'public limited' Joint and
Cooperative
Sectors
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14.2.1 Role of Public Sector
In most of the countries, the activities, which are not favoured or undertaken by
private sector, are left to the public sector to perform. In other words, public (and
merit) goods and services, such as water supply, roads and bridges, health, and
education are provided only by public sector (government). Thus public sector
produces those goods and services that it can deliver best and private sector produces
those that it can do best. However, for strategic reasons, certain goods and services
are kept exclusivelyfor public sector productien even though private sector is willing
and can produce and deliver those goods and services.
In India, fiom the very beginning since independence, a 'mixed economic system'
was envisaged. Under this system both public and private sectors were expected to
make equally significantcontributionsto the progress and prqpperity of the country.
In the Indian concept of 'mixed economy', ithe public sector was accorded far
significant role in comparison to the traditional .rolesplayed by it elsewhere.The aim
of massive investment in public sector was not only to control the 'commanding
heights' of the economy but also to make up for-theinitial limitationsof the private
sector in an undeveloped country. 'Commanding heights' consistedof: infkitmctural
industries, d c h as roads and bridges, railways, civii' aviation, water supply,electricity,
telecommunications, etc. and ii) basic industries such as iron and steel, oil and
L .petroleum, heavy capital goods, chemicals, fertilisers, etc. It was felt that
establishment ofbasic industries should be left top1lblic sector so that limited resources
could be put to their best use. These industries an,ywaywould not have appealed to
the private sector as infkastructureand basic industriesneed long gestation periods,
heavy investments, and yield low returns. As per the felt need, some activities were
left exclusively within the purview of public sector and rest were left for both public
and private sector initiatives. In a sigruficant move, the number of industriesreserved
exclusively for the public sector has been brought down to 4 from one pre-
liberalisation number of 17.
The major objectives of public sector are to help in rapid economic growth, rapid
industrialisation, and create infrastructure for economic development. The other
avowed objectives of public sector are: to promote redistribution of income and
wealth, to promote balanced regional de velopment, to generate employment
opportunities, and to promote import su .bstitution and save precious foreign
exchanges. Ever since the Industrial Polic; 4 Resolution of 1956,the public sector
has been playing a strategicrole in our econo \my.The dominant role of public sector
was maintained during different plan perio ~ds,which has however been reduced
substantially after economic liberalisation of 1991.

7
Industrial
Organisatiorr and
14.2.2' Growth and Acl~ievementsof Public Sector in India
Ownership Structure
At the time of independence,the range of activities within public sector was limited.
The private sector dominated the entire range of activities. However, after the
independence, the activities of the public sector were expanded and public sector
enterprisesstarted engaging in wide range of n~anufacturingand service industries.
Since then there has been significant growth of public sector in terms of investnlent,
size, and number of units within it. As on March 3 1",1998, in central public sector
alone, there were 240 units and total investments in these units amounted to
Rs. 2,04,054, crores, which accounts for about 30% of the gross investment. This
is a substantialjump over just 5 units as on lStApril 1951, when investment was
mere Rs. 29 crores. As on March 313, 2000, there are 240 CPEs (8 under
construction, 157 involved in manufacturing/producing goods, and 75 rendering
services). Apart from CPEs, around Rs. 2,09,000 ciaoreshave been invested in
state level public enterprisesnumbering about 1100 units.
Around Rs. 1,00,000crores has been invested in departmental and local level public
sector units. Public sector contributes to about 45% of capital formation. According
to National Accounts Statistics, 1998, the share of public sector in GDP is around
25%. It contributes around 7% to gross domestic savings (GDS), and around 29%
to gross domestic capital fom~ation(GDCF). During the initial planning period, public
sector played a big role in capital formation. But, after two decades of planning, the
share of public sector in gross domestic capital formation started declining. As in the
case of any underdeveloped country, India also inherited an undeveloped
infrastructure from its colonial past. As private sector didn't have sufficientresources
and inclinationto invest in hfbstmctureprojects, which involved massive investment,
public sector contributed a lot in building up the basic infrastructure for economic
growth.
The public sector is quite dominant in non-financial iihtnlcture and has significant
presence in heavy industry, if not as dominant as in the forn~er.The objective of a
private sector unit is invariably economic: to n~aximiseprofit or to maximize revenues/
sales, whereas the objective of public sector,in most of the cases, is socio-economic.
The achievements of public sector thus should not be gauged only in terms of profit.
Though it is unfair to pit public sector against private sector,the performance record
reveals that they have created massive employnlent but at the same time allowed
over-manning also.
14.2.3 Drawbacks and Limitaticns
Notwithstanding a commendablejob done by public sector, it exhibits some major
shortcomings. 1n spite of its foray illto new areas of industrial and technical
competence, most of the units have rarnpant over-manning, lack of technological
upgradation, and lack of R&D. Possibljr because of all these reasons, productivity
and return on investment on public sect0.r undertakings are abysmally low, at least in
comparisonto private sector.Approximately, 40% of central public sector units are
chronic loss makers. The enterprises also did not make much headway in ternls of
human r e s o w development in training, skilled labour,worker motivation, managerial
initiative,and incentiveor prodgctivityl i lked
~ wages. In terms of value added, public
sector contributes even less than half o f private sector. Though public sector has
helped create a broad and diverse illdustrial base, its perfoimance in several fionts
has been dismal.
Public sector faces certain limitations owing to the nature of its objectives. Socio-
economic objective has been a domil iating feature of public sectm; and in some
8 cases the objective may be conhsing. Pricing policy of public sector is not always
profit oriented. In most of the cases, it runs onno-profit no loss principle. This leads
to lack of incentives for efficiency in the system and thus the competitive spirit gets
lost. Sometimes,vast capacity is created but it remains under-utilised owing to lack
of demand or possibly due to lack of bse. Public sector frequently suffers from
project and cost overruns. One of the major problems, in public sector, is labour
problem. Trade unions are conspicuous by their militant activities. Till few years
back, there was no policy, which could take care of shedding of excess labour.
Because of the very nature of the organisation, public sector lacks autonomy and
flexibility.Impediments come in the form of ministerial &ktats. Stiflingbureaucratic
control also pose hindrances on the smooth and steady functioning of public sector

Check Your Progress 2

1) What have been the main roles of public sector in India?

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2) What are the drawbacks of public sector?

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14.3 THE PRIVATE SECTOR

Any organisation, which does not belong to public sector, can be taken to be part of
private sector. Definitionally the firms, owned and managed exclusively by private
parties (could be individual or collective) are known as private sector units. Private
sector is sub-divided into : a) private corporate sector, which includes : i) joint
stock companies, and ii) cooperatives, and b) household sector. In India, over the
years, the range of goods and serviceswhere private sector has taken initiative and
is playing a major role, has widened substantially. These days, almost everything
conceivable is being manufactured in private sector. In terms of number of owners
involved, private sector can be subdivided into two categories, namely, 'individually
owned' and 'collectively owned'. Individuallyowned firms are managed by single
person and work with the objective of profit maximisation. Collectivelyowned private
firms can M e r be sub-divided into : i) partnership, ii) joint-stock companies, arid
iii) cooperatives (discussed in Section 14.5).In partnership ope, the firm isjointly
owned and managed/controlled by more than one person. As partnership is based
on the sharing of the profit the main objective of a partnership f m s like indn idm. '!
owned firm, is maximisation of profit.
Industrial
Organisation and
The private sector plays an important role in the industrialisationand development
Ownership Structure process of a country. Developed countries have a long history of private sector
involvement. Particularly in the West, private sector has been the prime mover of
growth. Because of the profit motive, private sector tends to be more innovative in
its approach towards production and processes. Profit motive not only drives it to
make efficient use of available resources, but also compels it to constantly introduce
newer products. Thus it contributes to welfare of a nation through provisions of
varieties of goods and services at competitive prices. Because of its positive role.
private sector is being given renewed importance everywhere to contribute in the
development process. After 3 decades of planning era with emphasis on greater
public sector role, India started realising the potential of private sector in mid eighties.
The Move towards privatisation was ad hoc in nature in the later half of eighties.
However, 1991 onwards,private sector was accorded significant role in the industrial
development of the country. It is conlmonly observed that when public sector takes
up the leading role in the development of infrastructure and basic industries,private
sector plays dominantrole in inteimediate and consumers goods iu~dustries.However,
after 199 1,even industries previously resewed for the public sector are being opened
up to private sector. Small and tiny industries,which belong to private sector, also
make substantialcontribution in the development process ofa country. (Even industries
previously reserved for the public sector are being opened upto private sector).
Small-scale industries create employment opportunities, make efficient use of the
local resources, provide scope for the exploitation of local entrepreneurialabilities,
help in income generations, reduce interpersonal income disparities and so on.
14.3.1 Growth and Contribution of Private Sector
In spite of limited areas of operation, the private sector in India has grown in size,
and turnover. Private sector contributes around 15% of GDP to gross domestic
capital formation, which is more than double of that of public sector. Private sector
contributes around 22% of GDP to gross domestic savings of the country. In tenns
of employment,private sector's contribution is way behind that ofpublic sector.
The total employment in private sector is around 87 lakhs whereas in public sector
it is more than 194 lakhs. However, the available statistics suggests that there has
not been much growth in employment generation in public sector in the last decade.
Rather there has been negative growth in employment since 1997. But, it has been
steadily growing in private sector except a negative growth from 1998to 1999.
14.3.2 Disadvantages and Limitations
The main motive of private sector is to maximise profit. Thus the areas1industries
where returnsto capital is high gestationperiod is comparatively short, and investment
required is not bulky, suit them the most. However, despite their contribution to
employment generatihn and a diverse industrial base, the growth in this sector has
not been sufficient. Greater interest in consumers goods industry (by private sector)
to earn quick buck creates an unbalanced kind ofpattems ofproduction, which may
not be sustainable if &countrydoes not have suitable infrastructurebase. In India,
private sector has hardly contributed to infrastructureand basic industries, which
are considered the backbone of a national economy. However, recently, there is a
surge in private sector investment in telecommunications, roads and transport, energy,
petrochemicals,etc.
Too much of private sector involvement, specifically if it is unregulated, not only
creates but also tends to strengthenmonopoly power and concentrate wealth in few
hands. If a level playing field is not created the players who already have resources
tend to gain maximum benefit out of greater private sector participation thus ultimately
10 creating inequitable distribution of income,
 Public, Private,
Private sector is not always dominated by entrepreneurs who have enough resources. Joint and
; Particularly in a country like India, where capital is scarce, private sector initiative Cooperative
Sectors
remains tardy owing to the non-availability of venture capital. If capital market is not
developed and it is difficult to raise sufficient resources from financial institutions,
private sector cannot contribute to progress at a desired pace.
Check Your Progress 3
I) Define private sector?
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2) Mention two advantages and two disadvantagesof private sector?
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14.4 THE JOINT SECTOR

Joint sector is a type of organisation where both government and private entities act
as collaborating partners. Though joint sector gained prominence after the Dutt
Committee report in 1969, this form of organisations had already started appearing
after the Industrial Policy Resolution of I 956. This resolution made provisions for
collaborative ventures between private and public sector. In this type of arrangement,
both private sector and public sector own, control, and manage resources jointly,
hence the name 'joint sector'. Earlier, public financial institutions hardly had any
control over the resources they had invested in private sector. The idea ofjoint
sector was broached so that public sector could have some control over the financial
resources.
In joint sector, not more than 50% of equity can be owned by the gover&nent&d
financial institutions together. Secondly, a single private investor cannot hold more
than 25% of the paid-up capital without the permission of the Government of India.
A joint sector firm can be formed in accordance with the Companies' Act of 1956.
Some of the famous names in joint sector are Bharat Shell, Container Corporation
of India (Concor), Maruti Udyog Ltd., Gujarat State Fertiliser Corporation, Haldia
Petrocl~emicalsLtd., Mangalore Refineries and Petrochemicals Ltd. etc.
14.4.1 Role and Advantages of Joint Sector
The joint sector was envisaged so that some of the elements of social development
could be provide;. Like pqblic sector, joint sector also help in achieving social
objectives such as creation of employment opportunities, reduction of inter-regional
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Organisation and
disparity, and development of backward regions. Participationof the government in
Ownership Structure the business helps control concentration of monopoly power; curb the growth of
monopolies and business malpractices.The advantages ofjoint sector are that it can
combine best of both the public sector and the private sector. In a joint sector firm,
much-needed financial resources can be obtained h m t h e public financial institutions
and the private party can put in their best practices so that it can lead to better
industrial growth in the desired direction. Thus joint sector can broad base the
industrial structure by motivating firms to areas or industries where private sector
would not have ventured alone.
14.4.2 Limitations and Disadvantages
Joint sector firms have the potential for conflict between the parties involved in the
venture. As private sector is profit oriented and public sector hr: social goals to
achieve,this can create conflict in objectives.

14.5 THE COOPERATIVE SECTOR

The organisations where peoplejoin voluntarily to pursue economic interests are
known as cooperativesocieties,which are collectively known as cooperative sector.
A cooperative society is a voluntary, independent business enterprise, formed to
satisfy comnlon need(s) of the participating members of the venture. They can be
production-, market- and service-oriented. In tem~sof organisations,cooperatives
differ from other types of firms. In case of private sector and even in the case of
public sector,the persons who own the resources, persons who control the resources,
and the persons who are the final customers or users, are normally separate entities.
Thus, the components of ownership, control, and use are not unified. However, in a
cooperative type organisation, all the above three entities belong to the same group.
In other words, in a cooperative type arrangement, those who own resources, those
who control the resources, and those who use the final goods and services are all
one and the same group. These characteristics of the cooperative sector make it
essentially different fiom private and public sector. By virtue of the very nature of the
organisation, cooperatives call for direct responsibility and accountability from the
cooperating agents.
Cooperativetype organisations,of course of different variants, are very popular in
European countries, (especially the Scandinaviancountries), Japan, Israel, Canada,
and India. Cooperative firms were quite popular in erstwhile USSR. Consumers'
cooperatives,agricultural cooperatives,and other types, such as housing, banking
and workers' productive cooperatives are quite popular in West-European countries.
Literaturesuggeststhat some of the largest concenttation of cooperative development
is still there in Western Europe. In USA, most of the cooperative organisations
remain confiied to rural areas and deal with agriculture related activities. In Japan,
cooperatives are mostly ruralby nature, well organised, well integrated and most of
the farmers belong to multi-purpose cooperatives. Whichever country they belong
to, in majority of the cases cooperatives have catered to the needs of rural and
agrarian classes.
International Cooperative Alliance (ICA) reveals some impressive bets and figures
abou~the dominance of cooper~tivesectors. According to ICA, almost the entire
dairy p luctiun of Sweden is i??;lrketedby farmer-owned cooperatives. Similarly,
75% cf forest products of NOD\a! is processed and marketed b> cooperatives. In
Italy, cooperatives share 60% nl'rht. total wine production. It is inwresting to know
that 14 fru111c.1-owned cooperatn L'Sfigure in among the 500 largest corporations in
 Public, Private,
USA. TO quote a few more, 60% of chicken, 87% of pyrethrum, and 40% of
cotton are marketed by cooperatives in Bolivia. Kenya, instances and Brazil
respectively. Back in India. AMUL dairy cooperatives market a major share of
India's milk production.
Cooperative ventures in India span sectors such as agriculture, industry, and services.
Within these sectors. cooperatives are found in many sub-sectors. Functionally,these
cooperativeswork for various purposes such as marketing, !supplyof raw materials,
credits, etc. Some of the credit societies in the cooperative sector are agricultural
credit societies, indusirial cooperative banks, non-agricultural credit societies, and
State cooperative agricultural and rural developmel~tbanks. There are marketing
societies. such as for cotton. fruit and vegetables, tobacco, coconut, and there are

like. cotton ginning and pressing societies, and agricultural ~lrocessingsocieties.

Myriad other different types of cooperatives includr cold storage cooperatives,
inigation societies, energy cooperatives, farming societies, healtb-care cooperatives,
telecomn~unicationscooperatives, weavers' societies, other industrial societies,
cooperative industrial estates, labour contracts and constructior~ssocieties, forest
labourers societies,tribal cooperatives, transport societies, electronic cooperatives,
women's co-operative societies, students cooperative societies, multi-unit
cooperativesocieties and others. Famous names in the cooperative sector are Indian
Far~ners'Fertilizer Cooperative Ltd. (IFFCO) in Gujarat and the finest symbol of
cooperative movement in India now is AMUL, a formidable brand, not only in milk
products but also in ghee, butter, cheese, chocolates, ice creams, and now in pizza

Check Your Progress 4

1) What is the difference between 'joint sector' and 'cooperative sector'? '

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2) Name three joint sector companies and two cooperative sector organisati~ns?
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14.5.1 Objectives of Cooperative Sector
The objective of cooperative societies is to provide maximum possible service at
the least expense possible. Thus cooperative societies don't pursue tl~eeconomic
objective of maximisation ofprofits. However, they are treated for tax pllrpses like
Orgrnisrtion s ~ l d
one private sector, because the cooperatives have economic interests and their
OMner5hip Structure effectivenessis mneas~uedby the same standard as that for private sector. Cooperatives
were conceived to create a system of self-help among the poorer lot of the society.
The objectives of cooperative move^ nent in India are not only to provide goods and
services at a cheaper rate to the cooperating community, but also to instil a sense of
togetherness and collaborative inanagelnent of resources by the cooperating
community. Cooperative sector is promoted with the bcllefthat it has got the reach
and ability to benefit particular section of society or sector of the economy. \vhich
cannot be satisfactorily served by public sector or private sector.

14.5.2 Growth and Limitations

India figures quite prominently in any literature when cooperative lnovement is

concerned. India's Anizd, campaigning as the "taste oflndia", is not only a formidable
brand today, but also,has shown the world what cooperative venture is capable of
doing. Accordiilg to National Cooperative Unionof India. there has been a notable
growth of cooperattves ill India. Latest data suggests that no\\ ~t covers around
67% oftotal rural households. There are 2 1 national level cooperative federat~ons
and more than 3513 state level cooperative federations. A look at the growth of
. cooperative move,ment reveals that in 1998-99, there were 209 million members in
various cooperat;lves, which wasjust 5 1 million in mid-sixties. Likewise, number o f
cooperative organisations has risen from 3.4 lakhs in mid sixties to more than 5
lakhs in 1998-99.In terms of self-employment generation, cooperatives share 12.504
in the national economy.

In spite ofthis fi~bulousgrowth over the years, India11cooperati\,e sector has its own
problems and I.landicaps. Cooperatives are governed by the cooperative r ~ ~ land cs
laws, admillistered by the goverllnleilt through cooperaticc registrars. and ~t her
government ,appointees such as chairmen and managing directors. There are inally
instances wtren there have been excessive interventions of gove~mentauthontie\ I I I
the working of the cooperatives. The purpose of self-manage~nentof cooperatives
by the cooy,erati11gagents is not se~vedwhen one government apparatus interfere5
eve11in the; day-to-day affair. In a liberalised regime, when other types of organisations
are drifiing towards market-oriented working mechanisms or systems.
cooperartivesneed to have flexible rules and regulations and should be free fro111
official coi~trolsand interference. At the same time, given the volumtay and democratic
nature ofthe organisation, cooperatives should iilstil self-disciplineto make themselves
inore ieff'ective and efficient.

Coo,perative sectors, particularly in developing world, are expected not only to

grcw with public sector and private sector but also to con~petewith the111in many
fie,lds. They are expected to generate profit and at the salnc time are subjected to
v;xious govemllent control and rigidities. I* the existing system. the prevalent law
gives g o v e ~ e nthet right to take control of cooperatives, which restricts the sense
c,f involvement, sense of independence, and sense of self-relianceof the cooperating
members. Cooperatives often lack cohesion or bonding among the~l~selves within
the same cooperative sectors and suffer from acute resource crunch. Besides this
there is no level playing field for cooperatives to survive and sustain when there has
been massive entry of multinationals. Howcvel; there have been some attempts in
this direction in the fornl of new laws in some states. such as Andhra Pradesh, Bihar.
and Madhya Pradesh.
I.
 ]Public, Private,
Check Your Progress 5 Joint and
Cooperative
1) How can the cooperative sector serve the interests of people in a better way? Sectors

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14.6 LET US SUM UP

In any economic system,no single form of organisation can exist. The national economy
runs on the conditions that all major forms of organisationsnot only coexist but also
are dependent on each other. Because of the need of the time, immediately after
independence, public sector was accorded more than its traditional role in the Indian
economy. Over the years both public sector and private sector have contributed in
the deyelopment process of the Indian economy. However, after liberalisation,public
sector is gradually being marginalised in favour of private sector. Private sector now
has the required resources, will, and the capabilityto contribute even in the traditional
domains of public sector. Now, in an open and globally integrated economy where
survival depends on the efficient use of the scare resources, it is being realised that
private sector involvement is a better alternative than public sector involvement.
Hence, worldwide, there is a greater and faster move towards privatisation than
ever before.

14.7 KEY WORDS

Cooperatives: Cooperatives are private, voluntary, independent association of
people formed to pursue common economic interests and achieve a common
economic objective.
Joint Sector Firm: It is a form of organisation where both government and private
sector parties own, control, and manage resources and activitiestogether.
Privatisation: Move towards effective transfer of ownership or resources from
general government to public ownership.
Private Sector:Organisations, which are owned, controlled, and managed by private

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Industrial Public Limited Company: Organisation,where owners' or stock holders' liability
Organisation and
Ownership Structure is limited by the amount of shares owned.
Public Enterprises: Refers to non-departmental undertakings, which include
corporations as well companies at various levels of governments (Central
Government, State Government,or Local Government ).

14.8 SOME USEFUL BOOKS AND REFERENCES

Aganvala, P. N: (200.1). A Comprehensive History qf Business in India: Froni
3000 BC to 2000 AD, Tata McGraw-Hill Publishing Company Limited,New Delhi
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Problems, Sage Publications Ltd. London.
Public Enterprises Survey Report. Various Issues.

14.9 ANSWERS OR HINTS TO CHECK YOUR

PROGRESS EXERCISES
Check Your Progress 1
1) See section 14.2,1a paragraph
2) See section 14.2,1gparagraph
3) See section 14.2, 2ndparagraph
Check Your Progress 2
1) See sub-section 14.2.1
2) See sub-section 14.2.3
Check Your Progress 3
1) See section 14.3,1Hparagraph
2) See section 14.3, 2ndparagraph; sub-section 14.3.2
Check Your Progress 4
1) See section 14.4,1a paragraph; section 14.5,lSparagraph
2) See section 14.4, 2ndparagraph; section 14.5,4"' paragraph
Check Your Progress 5
1) See sub-section 14.5.1
2) See sub-section 14.512