Public Sector, Private Sector and Global Enterprises — OCM STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceOCMPublic Sector, Private Sector and Global Enterprises5 Marks
Question
What is Public utility ? Explain Its features.
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Answer
Introduction :
Certain basic needs are inevitable for general electricity, water, transportation, communication cannot be imagined.
It is the responsibility, of government to provide basic facilities.
The government of each country invests huge amount of capital and establish industries to provide such basic and inevitable necessities. These industries are called industries of utility.
Meaning of Public utility:
The organization providing inevitably needs, services and facilities with efficiency at cheaper rate is called "Public Utility".
The units of public utility are the units of water supply, electricity supply, transportation, facility, and vehicles for it, gas. drainage etc. primary needs supplier units.
Characteristic of Public utility :
Government Ownership :
Most of the units of public utility are owned by government.
In Gujarat in many cities private sector Torrent Power Company provide e electricity.
In the same way Adani Company supplies gas.
Huge Capital investment :
Public utility is required by entire public. Huge capital is required for production and distribution.
Monopoly Service :
If the quality of public utility service is weaker or inferior it affects general public.
So monopoly is given to such units. Such units are under-controlled.
Management :
Services of public utility are managed by Gram Panchayat, Taluka Panchayat, Jilla Panchayat, Municipality and Metro Municipality.
At state level transportation, post and telegraph, Telephone etc. services are managed by various departments state a government, or government company or government corporation and at central level it is managed by central government.
Need for punctuality and efficiency :
Public utility service is the most important for human life.
Regularity and efficiency is expected for these services.
Easy access :
Public utility services should be assessable front very near to tines residence.
It should be available at cheaper rate.
Public has to bear such hardships if they are available front distance.
Equality:
These facilities should he available without any discrimination of caste and creed, rich and poor, higher and lower community of society.
It should be provided equally.
Entry of Private Sector :
Initially all utility services were provided by government.
Now law has been amended and private units are allowed to enter.
Due to healthy competition it is expected that good services will be provided to die customer.
Government controls private units and makes sure that customer at not exploited.
Conclusion :
It is expected that quality and efficiency of public utility services will be wed if there is competition between government units and private sector units providing utility.
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