What is a public sector enterprise?

Public sector enterprises are business enterprises owned and operated by the government or any of its agencies. The public sector consists of all those undertakings which are owned and controlled by the Central Government, State Governments, or municipal bodies.

The main characteristics of public sector enterprises include:

1. State Ownership — Fully owned by the government or some public authority.
2. Government Control — Ultimate control lies with the government.
3. Service Motive — Primary objective is to render service to the public at large, though some surplus may be earned.
4. Public Accountability — Since the money invested is public money, these enterprises are answerable to the public through Parliament.

Public sector enterprises are organised as departmental undertakings, statutory or public corporations, and government companies. Examples include Indian Railways, Posts and Telegraphs, Food Corporation of India, Reserve Bank of India, and Delhi Transport Corporation.