PSU is an acronym for Public Sector Undertaking. The term PSU or PSU Companies represents the group of Companies in India owned by the union government of India, or one of the many state or territorial governments, or both.
In a PSU Company, the majority of the shares (51% or more) are owned by Central or State Government. Central Public Sector Enterprises are administered by the Ministry of Heavy Industries and Public Enterprises.
Role of the PSU Companies
The prime motivation for the setting up PSUs or awarding any private company a PSU was to accelerate the economy of the nation through proper industrialization.
PSUs are committed to serve the equipment needs of strategically important sectors and to generate employment and income.
Broad categories of PSUs
The Public Sector Undertakings are generally categorized into Maharatna, Navaratna and Miniratna Companies based on various factors like average turnover, net profit, net worth etc.
Maharatna PSUs are generally the government companies with an average annual net profit of over Rs. 5000 crores for 3 years or average annual net worth of Rs. 10,000 crore for 3 years, or average annual turnover of Rs. 20,000 crore for 3 years. Such companies are free to decide on investments up to 15% of their net worth in a project.
Navaratna PSUs are generally awarded for the companies having a score of 60 (out of 100), based on various parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest, and Taxes), capital employed, etc.
Miniratna PSU companies are the fast-moving government companies with a positive net worth earning around 30 crores of net profit.
Few significant PSU companies in India
National Thermal Power Corporation (NTPC)
NTPC, a Maharatna Company, is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then it has established itself as the dominant power major with a presence in the entire value chain of the power generation business. From fossil fuels, it has forayed into generating electricity via hydro, nuclear and renewable energy sources. Check its website.
Oil and Natural Gas Corporation (ONGC)
Maharatna ONGC is the largest producer of crude oil and natural gas in India, contributing around 70 percent of Indian domestic production. The crude oil is the raw material used by downstream companies like IOC, BPCL, HPCL to produce petroleum products like Petrol, Diesel, Kerosene, Naphtha, Cooking Gas-LPG. Check its website.
Steel Authority of India Limited (SAIL)
Steel Authority of India Limited (SAIL) is the largest steel-making company in India and one of the premiere Maharatna companies of the country’s Central Public Sector Enterprises. Check website.
Bharat Heavy Electricals Limited (BHEL)
Maharatna BHEL is an integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies of its kind in India engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railways), Renewable Energy, Oil & Gas, Water, and Defence. Check website.
Indian Oil Corporation Limited (IOCL)
Indian Oil Corporation Limited (IOCL) commonly known as IndianOil is an Indian government-owned oil and gas company headquartered in New Delhi. It is the largest commercial enterprise in the country, with a net profit of INR 19,106 crore for the financial year 2016–17. It is among the Maharatna Companies in India. Check website.
Coal India Limited (CIL)
Coal India Limited (CIL) as an organized government-owned coal mining corporate came into being in November 1975 with the government taking over private coal mines. With a modest production of 79 Million Tonnes (Mt) at the year of its inception Maharatna CIL, today is the single largest coal producer in the world. Check website.
Gas Authority of India Limited (GAIL)
Maharatna GAIL is the largest Government owned natural gas processing and distribution company in India. It has the following business segments: natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemical, city gas distribution, exploration and production, GAILTEL and electricity generation. Check website.
Bharat Petroleum Corporation Limited (BPCL)
BPCL is an Indian Government controlled Maharatna oil and gas company headquartered in Mumbai, Maharashtra. The Corporation operates two large refineries in the country located at Mumbai and Kochi. It is one of the Maharatna companies of India. Check website.
Bharat Electronics Limited (BEL)
BEL is an Indian Government owned aerospace and defense company with about nine factories and several regional offices in India. It primarily manufactures advanced electronic products for the Indian Armed Forces. BEL is one the premiere Navaratna Companies of India. Check website.
Airports Authority of India (AAI)
AAI under the Ministry of Civil Aviation is responsible for creating, upgrading, maintaining and managing civil aviation infrastructure in India. It provides Air traffic management (ATM) services over Indian airspace and adjoining oceanic areas. It also manages a total of 125 Airports, including 18 International Airports, 7 Customs Airports, 78 Domestic Airports and 26 Civil enclaves at Military Airfields. Check website.
Bharat Sanchar Nigam Limited (BSNL)
BSNL is an Indian government telecommunications company headquartered in New Delhi. It was incorporated on 15 September 2000 and assumed the business of providing telecom services and network management. Currently, it provides diversified services in the communication industry. BSNL is India’s oldest communication service provider company. Check website.
How to get your career into PSUs?
Every PSU company has its own way of the recruitment. Each PSU used to conduct own exam and interview schedule before. But presently almost all the PSU consider GATE Score as a major factor in the process of recruitment.