There are various reasons due to.which government has taken up the responsibility of public sector.
Three reasons with example of public sector activities are
(i) Railways :Only the government can invest large sums of money on projects with a long gestation ’ period.
(ii) All India Institute of Medical Sciences (AIIMS): It provides quality health services at economical rates.
(iii) National Thermal Power Corporation (NTPC): To provide electricity at a lower cost rate was the main objective of the government, to protect and encourage the small scale industries also included in purpose.