What is meant by PSUs?
An enterprise or corporation in India which owned by the government, and in which the government has a majority stack of 51% or more, can be classified as a public sector undertaking (PSU) or public sector enterprise.
All government owned corporations, statutory corporations and a nationalized company is called PSU. These enterprises or corporations are wholly or partly owned directly by the Government of India or by one or both of the other State or Territorial Governments together.
The following terms are used for Public Sector Undertakings:
- CPSU : Central Public Sector Undertakings
- CPSE : Central Public Sector Enterprises
- SLPE/SLPU : State Level Public Enterprises/Undertakings
1. CPSU : Central Public Sector Undertakings
- Companies in which the majority stack is either 51% or more with the Central Government or any other CPSE.
- As of March 2019, there were a total of 348 CPSE companies in India. However, this count does not include the count of insurance companies. If we talk about operational enterprise then this number is about 249.
- CPSU companies are like National Thermal Power Corporation (NTPC), National Hydro-electric Power Corporation (NHPC), Nuclear Power Corporation (NPC), Neyveli Lignite Corporation (NLC), North-eastern Electric Power Corporation (NEEPCO), Damodar Valley Corporation (DVC), Power Grid Corporation (PGCIL), Coal India Limited (CIL), and the Railways, and includes their respective successors, assigns and permitted substitutes, BSNL.
2. CPSE : Central Public Sector Enterprises
- Companies in which the Central Government holds 100% shares.
- CPSE are like Railways, Indian Postal Services
- CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises.
- CPSEs are further classified like below category:
- The Maharatnas
- The Government of India approved the introduction of the “Maharatna” category for Central Public Sector Enterprises (CPSEs) on 2009. The main objective of CPSEs is to empower, emerge as global giants and expand their operations globally.
- Can invest Rs. 5000 crores in one project.
- Maharatnas companies are like NTPC Limited, Steel Authority of India Limited, Indian Oil Corporation Limited, Oil & Natural Gas Corporation Limited etc.
- Navratna
- The Government of India the “Navratna” category for Central Public Sector Enterprises (CPSEs) in 1997. The main objective of CPSEs is to gain comparative advantage as global giants and expand their operations globally.
- Can invest Rs. 1000 crores in one project.
- Navratna companies are like Shipping Corporation of India (SCI), Oil India Limited (OIL), Hindustan Aeronautics Limited (HAL), Mahanagar Telephone Nigam Limited (MTNL), National Aluminium Company (NALCO) etc.
- Miniratna
- The Government of India introduced the ” Miniratna” category for Central Public Sector Enterprises (CPSEs) in 1997. The main objective is to further turning the public sector into a profit making enterprise by making it more efficient and competitive.
- Miniratna Category – I
- Category-I companies are such Miniratna, which have made consistent profits in the last three years. The pre-tax profit should have been greater than or equal to Rs 30 crore at least once out of three years and the company should have a positive net worth.
- Category-I companies are like Airports Authority of India, Indian Railway Catering & Tourism Corporation Limited etc.
- Miniratna Category – II
- Category-II companies are such Miniratna, which have made consistent profits in the last three years. The company should have a positive net worth.
- Category-II companies are like Bharat Pumps & Compressors Limited, Broadcast Engineering Consultants (I) Limited etc.
- Miniratna Category – I
- The Government of India introduced the ” Miniratna” category for Central Public Sector Enterprises (CPSEs) in 1997. The main objective is to further turning the public sector into a profit making enterprise by making it more efficient and competitive.
- The Maharatnas
3. SLPE/SLPU : State Level Public Enterprises/Undertakings
- Companies in which the majority stack is either 51% or more with the State Government or any other CPSE.
After India’s independence in 1947, only five central public sector enterprises were left, which were formed by the British government in India and by 2019, the number of PSUs was around 348.
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Quite interesting
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