Joint sector. All About Joint Sector Enterprise: Features, Role, and Policies 2022-10-22
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The joint sector refers to a type of economic organization in which the government and private sector work together to achieve a common goal. This collaboration can take many forms, ranging from the government providing financial support or infrastructure for private sector projects to the creation of joint ventures between the public and private sectors.
One of the primary advantages of the joint sector is that it allows for the sharing of resources and expertise between the government and private sector. By working together, both parties can leverage their respective strengths and knowledge to achieve a common goal. This can lead to more efficient and effective use of resources, as well as a more comprehensive approach to problem-solving.
In addition to resource sharing, the joint sector can also provide opportunities for the private sector to access new markets and customers. For example, a private company may be able to tap into the government's vast network of agencies and departments to find new customers and business opportunities. This can help to drive economic growth and stimulate innovation in the private sector.
Another benefit of the joint sector is that it can help to address social and economic issues that may be beyond the scope of either the government or private sector working alone. For example, a joint venture between the government and private sector could be used to develop new technologies or infrastructure that would help to address issues such as poverty, unemployment, or environmental degradation.
However, the joint sector is not without its challenges. One concern is that the government may not always have the expertise or resources to effectively manage and oversee joint ventures with the private sector. This can lead to mismanagement and inefficiency, and may even result in corruption or abuse of power.
In conclusion, the joint sector is a valuable tool for bringing together the resources and expertise of the government and private sector to achieve common goals and address social and economic issues. While it is not without its challenges, the potential benefits of the joint sector make it an important model for economic organization.
Joint Sector
This company has the authority to supply natural gas in Agra and Lucknow. The United States and France are the best examples of a Mixed Economy. Present Position in India. In the absence of foreign participation, the equity holding for the State Government should be 26%. From the point of view of private investors, uncertainty about their role in management and control has been a major inhibiting factor. Again, the share of joint sector in total value added was to the extent of 10. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected.
In the much publicised memorandum called "Tata Memorandum on Industrial Growth" submitted to the Government of India, J. By contracting with private providers, a government can eliminate some of the costs of bureaucracy that typically accompany government services. Paranjape, one of the members of the Dutt Committee, distinguishes between two types of the joint sector units: a large enterprises, with state and public financial institutions taking a commanding share in the equity holding of the company; and b small medium enterprises with a small percentage of equity with the State and Public financial institutions, where the government will appoint its nominee in the Board of Directors to have certain control over its management. Participation of the Government in the joint sector would also help to provide a built-in-check on the power of the large houses and can utilise the dynamic management efficiency of the private sector for attaining a higher level of industrial growth in the country. JSRs often evolve from one to the next. Tata gives what he call say minimum agreed defintion of the joint sector.
The concept of the joint sector is a product of certain evolutionary forces of which two seem to be most important: ADVERTISEMENTS: i A drastic change in the pattern of financing big industries in India with the advent and process of State-owned financial institutions; and ii An increasing demand to nationalize big business in order to curb the concentration of economic power. Similarly, through a Mixed economy, the state can avail the benefit of voluntary savings in society. The Annual Survey of Industries 1986-87 reveals that out of the total productive capital invested in the corporate sector amounting to Rs 89,034 crore in 1985-86, the joint sector accounted for only Rs 9,234 crore, i. Communities of practice are emerging. Joint sector consists of business undertakings wherein the ownership, control and management are shared jointly by the Government, the private entrepreneurs and the public at large….
The Joint Industry Board of the Electrical Industry: Serving IBEW Local Union No. 3 Members and Their Employers Since 1943
This review is largely guided by the annual Sector Performance Report SPR where included are the achievements of annual targets for the key sector performance indicators, agreed actions and attainment of undertakings for the preceding year s. The joint sector promotes the concept of a mixed economy. Rationale of Joint Sector : The basic objective of the joint sector is that public funds should primarily be used to sub serve the public interest and that their deployment should not result in undue benefits to a few individuals or business houses. Moreover, this definition does not specify the fields in which the joint sector ventures were to be encourage, by the nature of control and management, organisational details etc. This paper argues that the joint sector needs to be encouraged because of the significant role it can play in the social control of private industry, in the promotion of industrial growth, in the mobilisation of resources, and in broad-basing of entrepreneurship. Meaning and Kinds 4. The Committee viewed the joint sector as an important means of curbing the increasing concentration of economic power.
Origin and Evolution of the Joint Sector 2. Converting the existing public sector enterprises into Joint sector enterprises. The Committee also felt that the joint sector is likely to be more effective than licensing for realising this objective. Joint sector ventures have an advantage over private businesses because they do not have the same need to turn a profit. The joint sector has also acquired other objectives such as serving as an instrument of state initiative in the development of priority industries, in dispersal of ownership and control over industries and in creating a new class of entrepreneurs.
Practical guide for effective joint sector reviews in the education sector
Here the forest products are used as raw materials. Moreover, the economic liberalisation introduced in India has also opened the chances for the expansion of the joint sector. It can assure public control and social accountability. Both the Government agency and the private entrepreneurs have different purposes. Now let us understand about the industries belonging to this sector Understanding the industries in this sector The industries in this sector are those businesses that are operated and owned by governmental agencies, private individuals, and groups of individuals. On the other hand, the foreign investor and the investing company should have an equity holding of 20% and 35% , respectively.
For more than five decades EPW has remained a unique forum that week after week has brought together academics, researchers, policy makers, independent thinkers, members of non-governmental organisations and political activists for debates straddling economics, politics, sociology, culture, the environment and numerous other disciplines. What are the advantages of joint sector? The main objective behind setting up the joint sector projects was the development of backward regions and reduction in the concentration of economic power. They are Maharatna, Navaratna, Miniratna. The Water and Environment Sector assesses its performance, sets priority actions referred to as undertakings and offers policy guidance through a forum called the Joint Sector Review JSR. In the years following independence, a number of companies were floated by the Government in collaboration with the private sector by sharing ownership management and control with them. Hence, both these sectors combined their strengths to Establish joint enterprises.
The sector in simple words is all about joint control and joint ownership to encourage professional management of the industries. The joint sector review is a key moment to assess the implementation of our policies and programs, to draw lessons and to anticipate the next steps for the following year. This measure also provided two other advantages: ADVERTISEMENTS: i It will help obviate the difficulties likely to be faced organising large public sector enterprises from scratch and ii It would also help the Govt. They also get concessions that are not available for projects in the private sector. The guidelines regarding the roles of the Government and the private entrepreneurs in running and controlling the joint sector are unclear. It is really interesting to see that although in the pre-1991 period, the joint sector did not make much headway in the country but in the post-1991 period, the country has been experiencing into the growth of all the four different forms of joint sector enterprises, especially of the third type, with the disinvestment of the share of public sector enterprises through its sale to the private sector. ADVERTISEMENTS: This form of industrial organisation was found appropriate for the import of foreign technology and capital, as in Cochin Refineries 1963 , Madras Refineries 1965 , and the Madras Fertilizers 1966 , for the utilisation of indigenous entrepreneurial and Managerial resource as in Air India 1947 , for the use of organisational capabilities of existing houses, such as the Bird Heilgers Group in Bolani Ores 1957 and the mobilisation of financial resources from the public as in the Gujarat State Fertilizer Company 1965.
Under the pressure to either expand government or shrink it, many policy makers have attempted to take a middle path, encouraging partnerships between the public and private sector. Unscrupulous people may use agreements with the government to make money for themselves at the public's expense. The private sector of the country suffers from paucity of financial resources and public sector suffers from lack of dynamic management. First published in 1949 as the Economic Weekly and since 1966 as the Economic and Political Weekly, EPW, as the journal is popularly known, occupies a special place in the intellectual history of independent India. Thus, the joint sector is expected to play a positive role in future industrial growth of the country.
All About Joint Sector Enterprise: Features, Role, and Policies
The term is applied to an undertaking only when both its ownership and control are effectively shared between public sector agencies on the one hand and a private group on the other. The rationale for setting up joint sector projects was mainly for developing backward areas, reducing concentration of economic power and to accelerate industrial development. In this article, You will get an in-depth idea of Joint Sector Enterprises. The material and information contained herein is for general information purposes only. Sometimes, the Central Government and one or more State Governments, in partnership with the private sector, may jointly set up these enterprises. Quality of Services One reason for the creation of a joint sector is that it can be a way to reduce the costs of government.
