Public Sector Enterprises/Undertaking of Rajasthan

Public Sector Enterprises Undertakings

Public Sector Enterprises play an important role in the planned development of the state. They are formulated to speedup growth of infrastructure, increase employment opportunities, secure public welfare and help reduce regional imbalances in development. Public Sector Enterprises functioning in Rajasthan fall into two categories:

  • Public Enterprises setup by Union (Central) Government
  • Public Enterprises setup by State Government

Before going into details of public enterprises, it is important to note the different types of public sector enterprises.

Types of Public Sector Enterprises:

There are three different forms of organisation used for the public sector enterprises in India. These are:

  • (1) Departmental Undertaking;
  • (2) Statutory (or Public) Corporation, and
  • (3) Government Company.

Departmental Undertaking: form of organisation is primarily used for provision of essential services such as railways, postal services, broadcasting etc. Such organisations function under the overall control of a ministry of the Government and are financed and controlled in the same way as any other government department. This form is considered suitable for activities where the government desires to have control over them in view of the public interest.

Statutory Corporation (or public corporation) refers to a corporate body created by the Parliament or State Legislature by a special Act which define its powers, functions and pattern of management. Statutory corporation is also known as public corporation. Its capital is wholly provided by the government. Examples of such organisations are Life Insurance Corporation of India, State Trading Corporation etc.

Government Company refers to the company in which 51 percent or more of the paid up capital is held by the government. It is registered under the Companies Act and is fully governed by the provisions of the Act. Most business units owned and managed by government fall in this category.

Types of Public Sector Undertaking in India

Public Sector Enterprises by Union Government:

  • Hindustan Salts Ltd, Jaipur
  • HPCL Rajasthan Refinery Ltd..
  • Instrumentation Ltd. , Kota
  • Rajasthan Drugs and Pharmaceuticals Ltd., Jaipur
  • Rajasthan Electronics and Instruments Ltd (REIL)., Jaipur
  • Sambhar Salts Ltd., Jaipur

Public Sector Enterprises by State Government:

The State Public Sector Undertakings (PSUs) consist of State Government Companies and Statutory Corporations. The State PSUs are established to carry out activities of commercial nature keeping in view the welfare of people and occupy an important place in the State economy. As on 31 March 2015, there were 51 PSUs including 48 Government Companies & 3 Statutory Corporations. None of these 48 Government Companies was listed on the stock exchange.

Role of State Government and Legislature:

The State Government exercises control over the affairs of these PSUs through its administrative departments. The Chief Executive and Directors to the Board are appointed by the State Government. The State Legislature also monitors the accounting and utilisation of Government investment in the PSUs.


Bureau of Public Sector Enterprises (BPE)

Bureau of Public Enterprises (BPE) was constituted under the administrative control of State Enterprises Department. BPE obtains quarterly performance reports and annual reports from the PSUs and evaluates them. Based on the evaluations necessary directions are given to the PSUs for improvement in their performance.

Important State Public Sector Enterprises: Statutory Corporations/ Boards

Important State Public Sector Enterprises: Registered Companies

Infrastructure Related State Public Sector Enterprises

Industry Related State Public Sector Enterprises

Tourism Related State Public Sector Enterprises:

Agriculture Related State Public Sector Enterprises:


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