Study into the profitability of government companies

It was previously considered that the Government was responsible mainly for the administration of the country and for the provision of necessary public utility services. But this the provision of necessary public utility services. But this concept slowly changed and it was considered that provisons of necessary infra structure for the economic and industrial growth of a country was also the responsibility of the State.
In the post independence period of India, the burden of providing necessary infra structure for the economic and industrial growth of the country fell on this national government. With this object in view, hundreds of crores of rupees have been invested in them and now they play a pivotal role in the economy of our country.
India being an underdeveloped country, was short of capital resources hence it was considered proper that the profits could be better utilised for this purpose.