• The government is responsible for developing all regions and states in a balanced way and removing regional disparties.

• Most of the industrial progress was limited to a few areas like the port towns in the pre-Independence period.

• Generally, private investors keep away from backward regions because of lack of adequate infrastructure facilities such as raw materials, transport, communication, warehousing, etc

• Public sector enterprises aim at reducing regional, urban-rural imbalances with industrial development that aids in accelerating economic development, providing employment to the workforce and development of ancilliary industries.

1. National Thermal Power Corporation
2. Coal India Limited
3. Engineers India Ltd.
4. Industrial Finance Corporation

Some Departmental undertakings under the Government of India are:-

1. Posts and Telegraphs
2. Railways
3. Broadcasting
4. Defence undertakings

Freedom from bureaucratic control

• Though it owes its formation to the government, a government company is relatively free from much of bureaucratic interference.

Flexibility of operations

• A government company can easily modify or alter its form or style of business in line with the prevailing situation.

Freedom from political interference

• In several respects, a government company functions independently of the parent ministry or department.

Benefit of Expertise

• By inviting equity participation by private investors, the government company can reap the benefits of technical and managerial know-how perfected by the private sector.

Best of both the worlds

• Partification by private investors naturally leads to efficient management of the government company resulting in increased profits.

1. Departmental undertakings
2. Statutory corporations
3. Public enterprises.