Features of joint sector ?

Followings are the features of joint sector:

1. Parties: There are mainly two parties in the joint sector. These are Government and private entrepreneurs. The central Government and private entrepreneurs may jointly set up new enterprises. Sometimes the central Government and one or more state government together may set up enterprises in partnership with the private sector. Of course, the public may also hold shares in joint sector enterprises.

2. Percentage of share: Generally in formation of joint sector 26% for government, 25% for private enterprise, 49% for investing public and financial institutions.

3. Percentage of share in foreign collaboration: In case of a foreign collaboration or participation with domestic partner, the percentage of share will be 25% for Government, 20% for Indian business, 20% for foreign investor and 35% for public.

4. Maximum limit of share: The limit of maximum share of a single party is 25%, No. single party is permitted to hold more than 25% of share without the sanction of the central government.

5. States of private sector: In caes of joint sector the private sector participation will allow only for minority interest. That is why, the private sector is not permitted to control any affair of the joint sector.

6. Type of business: The joint sector can do the business for large business houses, dominant undertaking, foreign companies etc.

7. Purposes: Generally, the joint sector is established for the purpose of promoting the socio-economic condition of the society and to help new and medium entrepreneurs.

  • 8. Responsibility of parties: In case of joint sector, government is resposible for supplying necessarycapital or financial aspect. On the other hand, private parties are responsible for carrying out the day-to-day technical and managerial affairs.


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