Business Environment, 1st Edition by Pearson

Chapter 35: The Public Sector in India | 455 |

Moreover, states-run PSEs provide public utility services

including generation and distribution of power, drinking water

and sewerage disposal and maintenance of basic infrastructure

within their regions. These are very vital goods and services

which are required both for promoting economic growth and

raising living standards of people. One signifi cant advantage

PSEs bring to the benefi t of the public is when these basic goods

are produced and distributed, their prices are not raised often

and their supply is regular. Had these key products been with

the private sector, their prices would have been raised too often

and supplies uncertain. Market fl uctuations, which are often

subject to manipulations, ...