How does a Government company strike a balance between fulfilling public welfare objectives and maintaining commercial viability?

A Government company is one in which not less than 51% of the paid-up share capital is held by the Central Government or any State Government or Governments, singly or jointly. It strikes a balance between public welfare and commercial viability in the following ways:

1. Public Welfare Focus — Since the majority shareholding is with the government, Government companies pursue social and developmental objectives such as providing essential services, generating employment, developing infrastructure, and serving remote/underserved areas.

2. Commercial Operations — At the same time, being registered under the Companies Act, Government companies operate on commercial lines with their own books of accounts, management structure and earning of revenues.

3. Professional Management — Government companies appoint qualified professionals to manage operations efficiently, ensuring economic viability while serving public interest.

4. Accountability — They are accountable both to the Parliament/Legislature (for public welfare goals) and to the Registrar of Companies (for commercial discipline).

Examples include Hindustan Machine Tools Ltd., Bharat Heavy Electricals Ltd., Mahanagar Telephone Nigam Ltd., National Thermal Power Corporation Ltd., and State Trading Corporation Ltd., all of which serve public objectives while operating commercially.