Trace the Growth of Public Enterprises in India
Pre-independence Period:
Nineteenth Century:
The birth of public sector in India took place in the third and fourth decades of the nineteenth century. The early governmental enterprise concerned itself with means of communications which were extended keeping pace with the territorial extension of British rule in the country.
In 1980, the government established a 'Mathematical Instrument Office' which is now known as 'National Instrument Factory'. The development in telegraphic and rail communications in England were instrumental in providing similar facilities in India at a fairly early date. The Post and Telegraph service was started in 1837, the Railway service was started in 1853. In 1851, the government set up the Geological Survey of India in Calcutta.
Twentieth Century:
Since the beginning of the twentieth century, the government supported the public enterprises for the development of the country and adopted the policy of protection of industries. In 1902, the government started the first Hydro Power Project (Shiva Samundram Power station). In 1905, the government established a Department of Commerce and Industry to initiate public enterprise through this department.
After First World War:
In 1916 the government appointed the Indian Industrial Commission. It recommended more active part by the government in the industrial development of the country. In 1921, the Indian Fiscal Commission was appointed by the government which recommended a discriminating protection policy for the industries in India. In 1930, the Broadcasting Department was brought under the control of the Government.
Public enterprises like Security Printing Press, Nasik, Garden Reach Workshop in Calcutta were established. In 1934-35 Mazagon Dock Limited, Bombay was established. In 1937, when the Indian National Congress came to power in many provinces, the State Governments planned an industrial and social development of the country.
After Second World War:
The Second World War in 1939 made the Indian Government to think afresh over the problem of industrial development of the country. Consequently, the Government established the Board of Industrial and Scientific Research and the Reconstruction Committees were set up for the same purpose. In 1944, a new Department of Planning and Development was set up with Sir Ardesher Dallal as member-in-charge. On 21st April 1945 the department issued a statement on industrial policy of the government. The policy statement confirmed that the government should nationalize the industries of national importance and the continuation of the ordinance factories, railway, Post Office and public utility concerns already under the state control. Other industries were left to the private sector. Many new public enterprises were started after Second World War and before independence. Of these the main were Chemicals and Fertilizer's Ltd., Hyderabad, Chemicals and Fertilizers Ltd., Travancore, Assam Tanneries Ltd., Gauhati, Paints and Mineral Ltd., Nagpur etc.