A Nationalized Industry is one which is owned and managed by the state. Nationalized of industries signifies state ownership of the means of production. State ownership works for the benefit of the society at large. The idea of nationalization is closely connected with socialistic ideas. In modern times, enterprises formerly carried on by private individuals are now largely being taken over by the Government and they are run under “Public Ownership”. The profit made by these undertakings go to the Government. The Government enterprises work on the same lines as private enterprises, but the capital is provided by the state, which ultimately obtains it from the tax payers.


Types of State Enterprises

·        Government Department

·        Public Corporations

·        Government Company


Government Department

Such enterprises exist in the areas of activities where there is absolute government control. Railways, Posts and Telegraphs, Defence Production etc. are some of the examples of the Government Departments in India.


Public Corporations

In india, a public corporation is a body created by law passed in parliament.

·        For public corporation the government lays down methods of working.

·        Parliament controls its general policies.

·        The corporation looks after its own day to day affairs.

·        The corporation works independently in financial matters.

·        It works for the general welfare of the community.

·        It can appoint its own staff.

·        It never works only for making profits.

·      The Chief Executive of the Board of Directors in nominated by the Government.

Examples of such types of Public Corporations in India are :

·        Life Insurance Corporation

·        Indian Airlines Corporation

·        Damodhar Vallye Corporation


Government Company

It is a concern where a Government Department takes initiative and establishes a company under company law.
The salient features of such organizations are

·        These companies are completely or partially owned by the government.

·        The chief organizer is appointed by the government department.

Examples of such companies in india are

·        Hindustan Machine Tools Ltd.

·        Bharat Heavy Electricals Ltd.

·        Sindri Fertilizers and Chemicals Ltd. Etc.


Advantages of Government Company are

·        Freedom in business working

·        They are autonomous bodies

·        They enjoy financial freedom

·        Government allows private investors to subscribe


Disadvantage of a Government Company are

·        They have freedom in name only

·        The Government appoints the Chief Officer

·        They work according to Government instructions


·        Such control reduces the efficiency of these organizations