In a developing country like India, where more than seventy percent of the total population is engaged in agriculture and the industrial base has not yet been, built sufficiently. The public sector occupies a pivotal role in the economic strategy. The public sector enterprise have been assigned a key place in the economic development of the country. Accordingly the hole of the public sector has been expanded significantly today in every walk of life, the origin of the public sector can be traced to the industrial policy resolution of 1948. It was the policy of 1956, which made the importance of public sector.