Public Sector is divided into the following nine categories:
1. Public sector enterprises must supply essential infrastructure for economic developmentwhich are known as primary public utilities
which include the following :
Airlines, Shipping, Railways, Power Generation, Tele communication etc.
2. Public sector enterprises also to have control of the commanding heights of the economy
e.g. Defence, Banks, Coalmines, Oil, Steel etc.
3. They are to play an entrepreneurial role called capital intensive industries such as Iron ore, Petro-Chemicals, Fertilizer, Mining etc.
4. Public sector enterprises under Government monopoly which includes: Telecommunication equipment, Defence production etc.
5. Public sector enterprises exclusively meant for High Technology like Atomic energy.
6. Consumer oriented public sector undertakings like Drug, Paper, Hotels etc. Public Sector enterprise which is set up in order to take sick private units like Textile, Engineering etc.
7. Public sector enterprises set up as Trade Corporation such as FCI, CCI etc.
8. Public sector enterprises which serve as a consultancy and engineering service etc.
Eg. MECON.