PSU Full Form: In India, a public sector undertaking (PSU) or a public sector enterprise is a government-owned enterprise, a government-owned corporation, statutory corporation, or nationalized company.
These establishments are owned entirely or partly by the Indian government, one of India’s numerous state or territory governments, or both.
In Public Sector Enterprises, the government owns more than half of the company’s total share capital. These businesses can be formed under the company act, a state act, or a Federal Act.
PSUs are divided into two types: central public sector undertakings (CPSU, CPSE), which are held entirely or partially by the Indian government, and state-level public sector undertakings (SLPSU, SLPSE), which are owned entirely or partly by state or territory governments.
PSU Full Form and Use of the pus
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There were just five public sector firms in India in 1951, but by March 2021, there were 365, including seven new defense PSUs. As of March 31, 2019, these businesses have a combined investment of around 16.41 lakh crore. As of March 31, 2019, the total paid-up capital was around 2.76 lakh crore. CPSEs made a profit of around Rs. 25.43 lakh crore in the financial year 2018–19.
PSU Full Form and India’s Economic History
PSU Full Form India, a public sector India, was predominantly an agrarian country with a shaky industrial basis when it gained independence in 1947. There were only eighteen state-owned Indian Ordnance Factories, which had been built to minimize the British Indian Army’s reliance on imported weapons.
With the British Raj electing to leave agricultural production and what little Western aping industrialization to the private sector, with commercial Tea processing, Jute mills, such as the Acland Mill, Railways, Electricity generation, Banks, Coal mines, Steel mills, Civil Engineering funded and owned by private individuals, such as Jamsetji Tata, families, or through privately owned and sometimes traded companies, such as the Bombay Stock.
Exchange, In the first half of the twentieth century, vocal critics of the Western capitalist system, notably the Indian independence movement led by Mahatma Gandhi, argued for a self-sufficient, mostly agrarian, communal village-based living for the populace.
Others chastised New Delhi, particularly the Presidency, for failing to build enough British Raj-funded Western-style schools, public libraries, universities, medical schools, engineering colleges, hospitals, and asylums to allow the rapidly growing population to follow Britain’s lead in industrialization.
The National Consensus after independence
The national consensus after independence was in favor of rapid economic industrialisation, which was considered as the route to economic development, improved living conditions, and economic sovereignty.
The first Industrial Policy Resolution, released in 1948, was built on the Bombay Plan, which emphasized the need for government participation and regulation. It spelled out the basic contours of the industrial growth strategy.
Following that, the Planning Commission was established by cabinet resolution in March 1950, and the Industrial (Development and Regulation) Act was passed in 1951, with the goal of empowering the government to regulate industrial development.
Prime Minister Jawaharlal Nehru pushed for a mixed economy and an economic policy centered on import substitution industrialization.
He believed that the development and modernization of the Indian economy required the construction of basic and heavy industry. To meet Nehru’s national industrialization objective, India’s second five-year plan (1956–60) and the Industrial Policy Resolution of 1956 stressed the expansion of public sector firms.
Dr. V. Krishnamurthy, renowned as the “Father of Public Sector Undertakings in India,” carried on his vision. The Feldman–Mahalanobis model was named after Indian statistician Prasanta Chandra Mahalanobis, who was essential in its development.
The establishment of PSUs was primarily motivated by the need to expedite the expansion of essential sectors of the economy, to meet the equipment needs of strategically vital sectors, and to create jobs and income. The government took over a substantial number of “sick units” from the private sector.
In addition, in 1969, Indira Gandhi’s government nationalized fourteen of India’s largest private banks, followed by six more in 1980. Until the 1991 Indian economic crisis, this government-led industrial policy with accompanying constraints on private enterprise was the main pattern of Indian economic development.
Following the crisis, the government began selling off its stake in a number of PSUs in order to raise funds and privatize enterprises with poor financial performance and efficiency.
Governance
Additional financial autonomy has been granted to certain public sector businesses. These are “public sector enterprises with comparative advantages,” which are given more liberty to compete in the global market in order to “assist [them] in their quest to become global giants.” In 1997, nine PSUs were given Navratna status, which gave them financial autonomy.
The name Navaratna originally referred to a talisman made up of nine valuable gems. Later, in the courts of Gupta emperor Vikramaditya and Mughal emperor Akbar, this title was used as the collective appellation for nine exceptional courtiers at their respective courts. [requires citation]
The government introduced the higher Maharatna category in 2010, raising the investment threshold for a corporation from 1,000 crores to 5,000 crores.
Maharatna corporations can now invest up to 15% of their net value in a project, while Navaratna companies can invest up to 1,000 crores without seeking specific government permission. Miniratnas are divided into two groups, each with a different level of financial autonomy.
List of Central Public Sector Units
Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), and State Level Public Enterprises (SLPEs) are the three types of PSUs (SLPEs). The Ministry of Heavy Industries and Public Enterprises is in charge of CPSEs. The Ministry of Finance’s Department of Public Enterprises (DPE) is the nodal department for all Central Public Sector Enterprises (CPSEs).
There are 11 Maharatnas, 13 Navratnas, and 73 Miniratnas as of October 2021. (divided into Category 1 and Category 2).
Maharatna CPSEs are listed below.
- Bharat Heavy Electricals Limited is a company based in India (BHEL)
- The Bharat Petroleum Corporation Limited is a public limited company based in India (BPCL)
- Coal India Limited is a company based in India (CIL)
- India’s Gas Authority Limited (GAIL)
- Hindustan Petroleum Corporation Limited is a public limited company based in India (HPCL)
- IOC Limited (Indian Oil Corporation) (IOCL)
- NTP Corporation (National Thermal Power Corporation) (NTPC)
- The Oil and Natural Gas Corporation is a company that produces oil and natural gas (ONGC)
- India’s Power Grid Corporation
- Steel Authority of India Limited is a company based in India (SAIL)
- Power Finance Corporation Limited is a company that invests in renewable energy.
Navratna CPSEs are listed below.
- Bharat Electronics Limited is a company based in India (BEL)
- India’s Container Corporation (CONCOR)
Engineers India Limited is a company based in India (EIL)
Hindustan Aeronautics Limited is a company based in India (HAL)
- Mahanagar Telephone Nigam Limited is a company based in Mahanagar, India (MTNL)
- National Aluminium Corporation of Canada (NALCO)
- National Buildings Construction Corporation is a construction company based in the United States (NBCC)
- Mineral Development Corporation of the United States (NMDC)
- NLC India is a company based in India (Neyveli Lignite)
- Oil India Limited (OIL INDIA) (OIL)
- Rashtriya Ispat Nigam Limited is a public limited company based in India (RINL)
Rural Electrification Corporation
• India’s Shipping Corporation (SCI)
Miniratna CPSE List
Category-I Miniratna (61)
- India’s Airports Authority (AAI)
- Antrix Corporation is a company based in the United States.
- Lawrie, Balmer
- Bharat Coking Coal Limited (Bharat Coking Coal) (BCCL)
- Bharat Dynamics Limited is a company based in India (BDL)
- Bharat Earth Movers Limited is a company based in India (BEML)
- Bharat Sanchar Nigam Limited is a public-sector company based in India (BSNL)
- Bridge and Roofing Contractors (India)
- Central Electronics Limited (Central Electronics)
- The Central Warehousing Corporation is a company that specializes in warehousing.
- Central Coalfields Limited is a coal mining company based in the United Kingdom.
The Central Mine Planning & Design Institute Limited is a company that specializes in mine planning and design.
Chennai Petroleum Corporation is a company based in Chennai
- Shipyard in Cochin (CSL)
- Cotton Corporation of India Limited is a private company based in India (CCIL)
- EdCIL (India) Limited is a company based in India.
Garden Reach Shipbuilders & Engineers
- Shipyard in Goa (GSL)
- Copper from Hindustan (HCL)
- HLL Lifecare, Inc.
- Newsprint from Hindustan
- Hindustan Paper Corporation Limited is a company based in India.
- HUD (Habitat for Humanity and Urban Development) (HUDCO)
- HSCC India Limited is a company based in India.
- Tourism Development Corporation of India (ITDC)
- Rare Earths from India
- Indian Railway Catering and Tourism Corporation (Indian Railway Catering and Tourism Corporation) (IRCTC)
- Railway Finance Corporation of India
- Indian Renewable Energy Development Agency Limited is a company that develops renewable energy in India.
- Trade Promotion Organization of India (ITPO)
- International Ircon
Kudremukh Iron Ore Company is a company that produces iron ore (KIOCL)
Mazagon Dock Limited is a company based in Mazagon, England.
- Coalfields of Mahanadi (MCL)
- MOIL Limited is a company based in the United Kingdom.
- Mangalore Refinery and Petrochemicals Limited is a company based in Mangalore, India (MRPL)
Mineral Exploration Corporation Limited is a company that specializes in mineral exploration.
- Mishra Dhatu Nigam (Mishra Dhatu Nigam)
- MMTC Ltd. is a company based in the United Kingdom.
- MSTC Limited is a company based in the United Kingdom.
- National Fertilizers is a fertilizer company based in the United States (NFL)
- National Projects Construction Corporation is a construction company based in the United States.
- National Small Business Administration
- Seed Corporation of the United States (NSC)
- NHPC Limited is a company based in New Hampshire.
- Coalfields of the North (NCL)
The North Eastern Electric Power Corporation Limited is a company based in India (NEEPCL)
The Numaligarh Refinery is a refinery in Numaligarh, India.
- ONGC Videsh Limited (ONGC Videsh)
- Pawan Hans Helicopters Limited is a company that specializes in helicopters.
- Projects and Development India Limited is a company based in India (PDIL)
- India’s RailTel Corporation
- Rail Vikas Nigam Limited (Rail Vikas Nigam) (RVNL)
- Rashtriya Chemicals & Fertilizers (Rashtriya Chemicals & Fertilizers) (RCF)
- RITES
- SJVN Limited (SJVN)
- India’s Security Printing and Minting Corporation
- Coalfields of the South East (SECL)
- India’s Telecommunications Consultants (TCIL)
- THDC India Limited is a company based in India.
- Coalfields of Western Australia (WCL)
- WAPCOS Limited (WAPCOS)
- Category-II Miniratna (12)
- India’s Artificial Limbs Manufacturing Corporation
- Bharat Pumps & Compressors (Bharat Pumps & Compressors)
- Broadcast Engineering Consultants India Limited is a company that specializes in broadcast engineering.
- Central Railside Warehouse Company Limited is a company that specializes in warehousing for
Engineering Projects (India) Limited is a company based in India.
- FCI Aravali Gypsum and Minerals (India) Limited (FCI Aravali Gypsum and Minerals (India) Limited (FCI Aravali Gy
- Ferro Scrap Nigam Limited is a company that specializes in ferro scrap.
- HMT International Limited is a company based in London.
- Indian Medicines Pharmaceutical Corporation Limited is a private company based in India.
- MECON
- India’s National Film Development Corporation (NFDC)
Rajasthan Electronics and Instruments Limited is a company based in Rajasthan, India.
PSUs for defense
- Advanced Weapons and Equipment India Limited is a company that manufactures advanced weapons and equipment in India (AWE)
- Nigam Limited for Armoured Vehicles (AVANI)
- Gliders India Limited is a company that manufactures gliders in India.
- India Optel Limited (India Optel)
- Munitions India Limited is a private company based in India.
- Yantra India Limited is a company based in India.
- Limited Troop Amenities
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