The Government Undertakings may be formed for different purposes in different forms

The Government Undertakings may be formed for different purposes in different forms.

a. For defense needs.

b. For public utilities.

c. For developing basic industries.

d. For essential services.

e. For social welfare activities.

For defense needs: –

In order to maintain defense secrets, private organisations may not be suitable. The Government Undertakings have to be established for defense pulpit.

For public utilities: –

Certain essential utilities have to be distributed without discrimination among the population of a country. Therefore Government Undertakings are established in areas like electricity, water supply, communication, sewerage etc.

For developing basic industries:-

Certain basic industries like chemicals, medicine, and iron, steel are essential for the country’s economic growth and should be under State control. Otherwise it could be harmful to the general public.

For essential services: –

Statutory organisations are established for services like Railways, Insurance, Airways, ESI, ONGC, Coach building, and P & T etc.

For social welfare activities: –

Government organisations are established for social welfare like medical help, education, housing, road building, forestries, etc. They will improve the economic condition of the people.