Public sector undertakings were assigned a key role while formulating strategy for planning because of the following reasons:
1. Growth of heavy capital goods industries.
2. Establishment of socialistic pattern of society.
3. Balanced regional growth.
4. It generates about 26. percent of national income produced by the country.
5. The public sector provides jobs to 185 lakh persons.
6. Surplus earned by the public sector enterprises have become an important source of non¬tax revenue of the Government.
7. Public sector enterprises check the concentration of economic power.