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  • Category: Indian Law

    What is a public sector undertaking (PSU) in India?

    Interested in knowing what is a PSU? Check out suggestions from experts on this page.

    What is a public sector undertaking (PSU) in India? Is it different from the public sector enterprises (PSE)? Are the public sector banks also PSEs or PSUs? Also regarding PSUs, what are Maharanta, Navratna and Miniratna-I and Miniratna-II companies?
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  • #138352
    Public Sector Undertaking (PSU) in India:-
    In India, PSU is an enterprise which is run by state. It is either owned by Central Government or by State Government and in certain cases run by both of them. An enterprise will never be claimed as PSU until majority of its stock is owned by the government.

    1) Central Public Sector Enterprises (CPSE's),
    2) State Level Public Enterprises (SLPE's)

    No, Public Sector Undertaking (PSU) is not different from Public Sector Enterprise (PSE). Both are one and the same i.e., an enterprise which is owned and run by State or Central Government.

    Yes, Public Sector Banks (PSBs) are also PSU's. They usually come under State Level Public Enterprises (SLPE's) i.e., run by State Government.

    This is a category formed by government in the year 2010 to raise company's investment.
    a) Average turnover of the year should be Rs:20,000 crore for 3 years or
    b) Average net profit of the year should be Rs: 2,500 crore.
    -Rs:1,000 crore to Rs:5,000 crore
    a) GAIL,
    b) BHEL,
    c) ONGC,
    d) Coal India etc.....

    This category was formed in the year 1997 and was given to 9 PSU's.
    a) A company should be first eligible to become Miniratna and should possess at least four independent board directors before it is awarded as Navratna or
    b) If the company is able to score at least 60 out of 100 on various parameters like PBDIT, production cost, service cost, manpower, net profit etc.....
    -Up to Rs:1,000 crore.
    a) BPCL,
    b) HPCL,
    c) Oil India,
    d) Bharat Electronics etc.....

    Miniratna 1:-
    -Company who has made profit worth of Rs:30 crore or more in any one of the three years.
    -Up to Rs:500 crore.
    a) Hindustan Paper,
    b) Hindustan Newsprint,
    c) Central Coalfields,
    d) Airport Authority of India etc.....

    Miniratna 2:-
    -Company who has made net profit every year over the last three years.
    -Up to Rs:300 crore.
    a) PEC Ltd,
    b) Bharat Pumps and Compressors,
    c) Engineering Projects,
    d) HMT (International) Ltd etc.....

  • #138379
    Public undertaking is an enterprise in which the there is major stocking of the Government exceeding 51 percent. Now this Public undertaking can be categorised as Central or State - government undertaking depending upon holding upon the major stock. Sometimes, an enterprise can be owned by both Central and State - government. An enterprise cannot be PSU unless the major stock is retained by the Government.
    No, Public - sector Enterprise does not differ from Public undertakings.
    Yes, the Public - sector banks come under the category of Public - sector Enterprises.
    Maharana are the companies where the investment of the companies are continually raised in order to retain its level. The performance of such companies are seen continually for three years and then this status is given. Maharana companies are GAIL, BHEL, ONGC etc and the essential condition for retaining the same is that the annual turn over should not fall below 2500 crore.
    Then there are 9 Navratna companies and this status has been offered to these companies depending upon its consistent performance, quality - parameters, involvement of the workers etc. Navratna companies are as follow -,SAIL, HPCL, BCCL,BEL etc. and this has to seen that their profits should not fall below 30 crores in any year and other parameters as examined by Board of PSE are within the satisfactory levels.
    Mini Ratna status has been offered by examining its earning potential and other parameters. Some of the miniratnas are Hindustan paper limited, HAL, Airport Authority of India etc.

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