Short essay on Government Undertakings

Government Undertakings are those units or organisations which are industrial or commercial units owned and controlled by the Government – Central, State or both. These are also referred to as Public Enterprises, State Enterprises, Government Enterprises or Public Sectors. These have gained importance in most of the developing countries.

Need for Government Undertakings

The emergence of these forms of organisations was mainly due to the following reasons:

1. Regulation of economy: –

The economic conditions can be better regulated when such organisations co-exist along with other forms of organisations in the country.

2. Acceleration in economic development:

Such organisations help in setting up a reasonable pace of acceleration in the country’s economic growth and progress.

3. Raising the standard of living of people:

These organisations should be set up in large numbers in order to increase the level of living standard of people.

4. Prevention of concentration of power:

The resting of economic power in few hands can be prevented which leads to greater degree of competition ensuring better products and services being offered to the public.

5. Improving job opportunities: – The establishment of such units will enable better scope for improving the job opportunities for the unemployed masses of the public.

Origin of Government undertakings

The origin of Public Undertakings or State controlled enterprises may be traced to the period of Chola kings before 12th century who constructed roads, dams, temples, etc. The growth of State enterprises in recent times can be seen in increased measure since India’s independence in 1947. The Industrial Policy Resolution of 1948 and 1956 emphasised the need for State control in essential and strategic industries like steel, mining, petroleum, shipping etc.

The Central and State Governments have nationalised a few Industrial Banks and also have undertaken the revival of “Sick Units” in order to protect the interests of the workers working in them and also for social welfare.

Government Undertakings are increasingly providing better untilities for the public in an organised manner and in increased proportions today.