Public Enterprises and Economic Development

It is generally believed that public sector is credited with the social welfare function. As against it, the private sector has the image of exploitation efficiency. The two sectors therefore, by their very nature suffer from different kinds of weaknesses. Though deprived of its dominant role, it has still to play an important role both at the central as well as at the state level if the economic development has to have a human face. Hence, revamping of the system lining of its functioning needs serious attention. The present study attempts to make a detailed, comprehensive and systematic analysis of Public Sector Undertakings of Uttar Pradesh within the national framework with a view to make this sector economically more viable. The basic philosophy for setting up these state enterprises was to bring about a result oriented cost benefit approach to the developmental activities accelerate growth in different sectors of the economy through specialized agencies and finally to ease the burden on State financial resources through use of institutional finance. Setting up of these numerous enterprises reveals the Government's desire and intention to bring about a rapid all-round growth of the State with its meager resources.