3 Marks Each

Question

Explain industrial structure on ground of ownership.

Vidyadip · Accepted Answer

Classification of Industries based on Ownership:

Industrial units can be divided as under on the basis of its ownership: $(1)$ Public Sector $(2)$ Private Sector $(3)$ Joint Sector $(4)$ Co-operative Sector

$(1)$ Public Sector $($Units$):$

The industries controlled and owned by government is a public sector unit.
The ownership of public sector unit is of local government, state government or central government.
E.g., Railway, telephone, post, atomic energy etc. are the industries owned by government.
They are public sector units. Public sector units are classified in three categories according to their variety:

$(A)$ Departmental Industries:

When government runs industrial units under its direct observation as its department and includes its income and expenditure provision in budget is known as departmental industries.

$(B)$ Public Corporations:

Units owned by state or central government but administered independently by corporation are called public corporations.
E.g. Life Insurance Corporation, State Transport Corporation, Air India, $IFFCO,$ Producing and selling fertilizers, $GNFC$ etc. units.
Public corporations are managed independently yet governments influence is observed in its policy decisions.

$(C)$ Joint Stock Companies:

The units managed by government like private companies under frame work of company laws.
Government issues shares and collects capital from public or institutions.
Such companies are joint stock companies.
They are free from direct government control.
Administrators have more powers to take policy decisions than public corporations and departmental units.
E.g., $ONGC, IOC, HMT,$ etc.

$(2)$ Private Sector Industries $($Units$):$

The units which are owned and managed completely by private sectors are known as the units of private sectors.
The management of such units is personal or in partnership.
E.g., $TISCO$ Company, Reliance Industries Ltd, Hero Honda Moto Corp Ltd., Bata Shoes Company and $TV.$ and mobile manufacturing companies.

$(3)$ Joint Sector Industries:

Units in which the ownership is private as well as of government is known as Joint Sector Industries.
In this type of industries government issues share capital and sells its ownership rights to people and firms.
Government issues $51\%$ or more shares.
Such units are under the control of government but still take the advantage of efficient management from the economic reforms in India the development of the industries of Joint sector are emphasized.

$(4)$ Co-operative Sector Industries:

The ownership of the unit is not private or individual but on co-operative basis is called co-operative sector.
E.g., Sugar industry in Gujarat and Maharashtra, Dairy industry is developed on co-operative basis.
Co-operative sector has entered in banking services also.
The aim of co-operative sector is to stop exploitation of marginal owners, to stop exploitation of labourers.
Consumers and to distribute the benefit of the unit among the members.

Answer