JOINT SECTOR PRASHANT MGMT.

FACULTY

Unit -5 Sectorial division Joint sector

 It was conceived by Industrial Licensing policy, enquiry     

committee, popularly known as Dutta Committee. State has the power to participate in decision making, control, mgmt. Advantages of both the sectors. The representative of both work together with in the same unit. State participation should not be less than 26% If the aggregate loans granted below 25 lakh, not to require the convertibility clause, if 25 to 50 , optional, if granted then have to appoint the representative as directors.

Formation of JS
 Joint venture of both govt.  State government or their industrial Development    

corporation may set up new companies. With equal participation of equity. Public financial institution may do equity participation by concession of loan. Promotion of private enterprise in to joint sector. Existing public sector may be transformed into joint sector through the sale of equity shares to private entrepreneur & general public.

Objectives & advantages of JS

 Social control of industries.  Curbing the Acceleration of economic

power.  Promotion of mixed economy. Disadvantages Lack of trust & confidence.

Co operative sector
 Came in 1904 , when co operative credit

societies act was passed.  In 1912 registration of non credit societies as well as cooperatives .  Specially progress in agricultural credit, products, supply of farm inputs.  There are 3.50 laks co operative societies with capital of 16 crores.

Types of co-operatives
 Processing & industrial. Co-operatives-

example Indian Former Fertilizers Cooperative Limited (IFFCO).  Storage , distribution & marketing cooperative National agricultural Cooperative for marketing Federation.(NAFED).  Functional co-operative - Fisheries.  Multi purposes.

Problems
 Not uniformity in the progress of agricultural

cooperatives in all the state.  Administrative problems.  Political overshadowing.

Favorable factors for private sectors in environment .

 Derive many benefits from government    

policies. Plans indication for specific areas for investment. ICICI,IDBI provides financial accommodation. Receive some direct incentives from govt. Able to take more profit from substandard products because of banning on imported products.

Unfavorable Factors for private. Sectors in environment

 Put constraints for private. Enterprise s

expansion plans.  Heavy burden of taxation.  Large no. of restriction . Exam. MRTP, Labor Law.  No independent fields for private sectors.