Public Sector undertakings were established in India as a part of mixed economy. After independence public sector undertakings played a vital role in the economic development of the country. The Government of India set up a committee under the chairmanship of the former RBI Governor. C. Rangarajan in 1993. Rangarajan Committee produced report in April, 1993 and recommended the percentage of equity share for disinvestment should be below 49% in the industry reserved for public sector and more than 74% or 100% in other industries.