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Public sector & public enterprises there of, have become a world wide phenomenon today. A country might be following a capitalistic, communistic or socialistic or a mixed ideology the public sector is invariably there in a lesser or greater degree. Thought the public sector is vital for both the developed & developing countries, it is primarily needed for the developing countries because of poor economic-matrix there. It is considered as a pace setter & catalyst in promoting the economic growth & uplifting the economy from the morass of existing dismal state of affairs. The public sector has become so much instrumental in the growth of economic development that A.H. Hanson has gone to the extent of saying this; "Public enterprises without a plan can achieve something, a plan without public enterprises is likely to remain on paper." The state today, for from being merely a passive observer of the economic progress has emerged as an active participant in the economic & industrial fields. India was not alone in ascribing an important role to the public sector.