A public corporation is an autonomous body corporate created by a special statute of a state or central government. A public corporation is a separate legal entity created for a specific purpose. It is administrated by a Board appointed by public authority to which it is answerable.

The public corporation is administered by the Board of Directors appointed by public authority to which it is answerable. Generally, the Board is nominated by government on the basis of experience and skills.

Strategic industries like defence and atomic power cannot be better managed other than government departments. Department undertakings can maintain secrecy in their working. So for the security of the country defence industry are always owned and controlled by departmental undertaking.

The aim of industrialisation is to develop all industries, essential for the country. Also, various regions of the country should be equally developed. Private sector may not establish industries in certain regions, where they do not find opportunities to earn more profit. They cannot be compelled to start their undertakings in backward regions. So government can start industries in backward areas.

Industrial revolution helped all-round growth of industries. Private entrepreneurs worked, only for profit motive. The exploitation of consumers and workers by private entrepreneurs became very common. The development of industries was left to the judgement of private enterprises. Therefore, government's control or intervention became a necessity to safeguard the interests of the general public.