The crucial importance of the public sector undertakings to the economic development of the country needs no emphasis. After achievement of independence of India, it was decided to make India a strong and viable economic power. In this national endeavor of great magnitude, it was envisaged that huge resources will have to be mobilize and a national will was to be generated to achieve the desired goal. The rationale of Public enterprise as a strong instrument of economic growth in a developing country like India need no emphasis. Public corporation in India can claim a respectable antiquity. Public enterprises in India have come to occupy an important place in the country's economy to adapt to the socialist pattern of the society.