In accordance with the nature and scope of the public enterprises, they have been divided into the following categories :
(1) Public Utilities :
Public utilities are those enterprises which supply an indispensable public service under monopoly conditions with government regulation of prices, profits, and service quality. Public utilities have certain essential features, namely (a) the service is considered to be so essential that it requires public regulation, ownership or operation; (b) the service is monopolistic in nature; (c) the service is affected with a public interest. Public utilities thus include transport and communication, supply of water, electricity, etc.
(2) Transport and Communication :
Railways, airlines, shipping, inland waterways, telephone and postal services, etc.
(3) Banking, Credit and Insurance :
Central bank, commercial banks, life insurance, etc.
(4) Multipurpose Development Projects :
River valley projects, generation of power, atomic energy, etc. belong to this category.
(5) Basic Established Industries :
Important industries which were set up in the private sector but subsequently taken over by the state, such as, iron and steel, coal mining, etc.
(6) New Industries or Services :
To supplement private industries, various industries set up in the public sector.
(7) Cultural Activities :
Activities to promote arts, science, culture, broadcasting and television, etc.