Public Sector Undertakings (PSUs) are government owned establishments, which are established and owned by the Government of India or State governments of India. The public sector undertakings are established either by nationalisation or an executive order incase of union government and state government or act of parliament incase of union government and act of state legislature incase of state government with the purpose to earn profit for the government, control monopoly of the private sector entities, offer products & services at an affordable price to the citizens, implementation of government schemes and to deliver products & services to remote locations of the country.
PSUs are also called government-owned enterprises or government-owned corporations or statutory corporations or nationalised corporations. These establishments are wholly or partly owned by the Government of India and/or one of the many state governments of India. Central Public Sector Undertakings (CPSUs) are wholly or partly owned by the Government of India, while State Public Sector Undertakings (SPSUs) are wholly or partly owned by state or territorial governments.
In 1951, there were five PSUs under the ownership of government sector in India. By March 2021, the number of such government entities had increased to 365. These government entities represented a total investment of about ₹16.41 lakh crore as of 31 March 2019. Their total paid-up capital as of 31 March 2019 stood at about ₹2.76 lakh crore. CPSEs have earned a revenue of about ₹24.43 lakh crore + 1 lakh crore during the financial year 2018–19.
Further information: Economic history of India
When India achieved independence in 1947, it was primarily an agrarian entity, with a weak industrial base. There were only eighteen state-owned Indian Ordnance Factories, previously established to reduce the dependency of the British Indian Army on imported arms.
The British Raj had previously elected to leave agricultural production to the Private sector, with tea processing firms, Jute mills (such as the Acland Mill), railways, electricity utilities, banks, coal mines, and steel mills being just some of the economic entities largely owned by private individuals like the industrialist Jamsetji Tata. Other entities were listed on the Bombay Stock Exchange.
Critics of private ownership of India's agricultural and industrial entities—most notably Mahatma Gandhi's independence movement—instead advocated for a self-sufficient, largely agrarian, communal village-based existence for India in the first half of the 20th century. Other contemporary criticisms of India's public sector targeted the lack of well-funded schools, public libraries, universities, hospitals and medical and engineering colleges; a lack seen as impeding an Indian replication of Britain's own industrialization in the previous century.
Post-Independence, the national consensus turned in favor of rapid industrialisation of the economy, a process seen as the key to economic development, improved living standards and economic sovereignty. Building upon the Bombay Plan, which noted the necessity of government intervention and regulation in the economy, the first Industrial Policy Resolution announced in 1948 laid down in broad strokes such a strategy of industrial development. Later, the Planning Commission was formed by a cabinet resolution in March 1950 and the Industrial (Development and Regulation) Act was enacted in 1951 with the objective of empowering the government to take necessary steps to regulate industry.
The first Prime Minister of India, Jawaharlal Nehru, promoted an economic policy based on import substitution industrialisation and advocated a mixed economy. He believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of the Indian economy. India's second five year plan (1956–60) and the Industrial Policy Resolution of 1956 emphasized the development of public sector enterprises to meet Nehru's national industrialisation policy. His vision was carried forward by Dr. V. Krishnamurthy, a figure known as the "Father of Public sector undertakings in India". Indian statistician Prasanta Chandra Mahalanobis was instrumental to its formulation, which was later termed the Feldman–Mahalanobis model.
In 1969, Indira Gandhi's government nationalised fourteen of India's largest private banks, and an additional six in 1980. This government-led industrial policy, with corresponding restrictions on private enterprise, was the dominant pattern of Indian economic development until the 1991 Indian economic crisis. After the crisis, the government began divesting its ownership of several PSUs to raise capital and privatize companies facing poor financial performance and low efficiency.
The public sector undertakings are headed by the head of board of directors also known as chairperson cum managing director cum chief executive officer and a vice chairperson cum deputy managing director cum co-chief executive officer along with the members of the board of directors also known as executive director cum c-level officer who are Group 'A' gazetted officers appointed by the President of India in case of central public sector undertakings, its subsidiaries & its divisions and appointed by the Governor of States of India incase of state public sector undertakings, its subsidiaries & its divisions. The officers and employees working for public sector undertakings, subsidiaries of public sector undertakings and divisions of public sector undertakings are also classified as gazetted officers and full-fledged government employees.
All of the public sector undertakings have been awarded additional financial autonomy. Public Sector Undertakings are government establishments that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants". Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997. Originally, the term Navaratna meant a talisman composed of nine precious gems. Later, this term was adopted in the courts of the Gupta emperor Vikramaditya and Mughal emperor Akbar, as the collective name for nine extraordinary courtiers at their respective courts.
In 2010, the central government established the higher Maharatna category, which raises a public sector unit's investment ceiling from ₹1,000 crore to ₹5,000 crores. The Maharatna public sector units can now decide on investments of up to 15 per cent of their net worth in a project while the Navaratna companies could invest up to ₹1,000 crore without explicit government approval. Two categories of Miniratnas afford less extensive financial autonomy.
Guidelines for awarding Ratna status are as follows:
|Category||Eligibility||Benefits for investment|
|Maharatna||Three years with an average annual net profit of over ₹2,500 crores, OR
The average annual Net worth of ₹10,000 crores for 3 years, OR
Average annual Turnover of ₹20,000 crore for 3 years (against Rs 25,000 crore prescribed earlier)
|₹1,000 crore – ₹5,000 crores, or free to decide on investments up to 15% of their net worth in a project|
|Navaratna||A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, the total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest, and Taxes), capital employed, etc., AND
A PSU must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.
|up to ₹1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding ₹1,000 crores).|
|Miniratna Category-I||Have made profits continuously for the last three years or earned a net profit of ₹30 crores or more in one of the three years||up to ₹500 crore or equal to their net worth, whichever is lower.|
|Miniratna Category-II||Have made profits continuously for the last three years and should have a positive net worth.||up to ₹300 crores or up to 50% of their net worth, whichever is lower.|
PSUs in India are also categorized based on their special non-financial objectives and are registered under Section 8 of Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).
|S. No.||CPSE Name||Net Profit (₹ crore)||Share (%)|
|1||Oil and Natural Gas Corporation Limited (ONGC)||13,445||9.7|
|2||Coal India Limited (CIL)||11,281||8.2|
|3||Power Grid Corporation of India (PGCIL)||10,811||7.8|
|4||National Thermal Power Corporation (NTPC)||10,113||7.3|
|5||Gas Authority of India Limited (GAIL)||6,621||4.8|
|6||Mahanadi Coalfields (MCL)||6,427||4.7|
|7||Power Finance Corporation Limited (PFCL)||5,655||4.1|
|8||Northern Coalfields (NCL)||4,971||3.6|
|9||Rural Electrification Corporation (REC)||4,886||3.5|
|10||Nuclear Power Corporation of India Ltd (NPCIL)||4,459||3.2|
|Aggregated profit of profit-making CPSEs||1,38,112||100|
|S. No.||CPSE Name||Net Loss (₹ crore)||Share (%)|
|1||Bharat Sanchar Nigam Limited (BSNL)||15,500||34.6|
|2||Mahanagar Telephone Nigam Limited (MTNL)||3,696||8.2|
|3||Bharat Petro Resources Ltd (BPRL)||915||2.0|
|4||Hindustan Copper Ltd (HCL)||569||1.3|
|Aggregate loss of loss-making CPSEs||44,817||100|
Main article: List of public sector undertakings in India
Public Sector Units (PSUs) can be classified as Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), or State Level Public Enterprises (SLPEs). CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises. The Department of Public Enterprises (DPE), Ministry of Finance is the nodal department for all the Central Public Sector Enterprises (CPSEs).
As of October 2021, there are 12 Maharatnas, 12 Navratnas and 73 Miniratnas (divided into Category 1 and Category 2).
Main article: Public sector banks in India
Currently there are 12 Nationalised Banks in India (Government Shareholding power is denoted in %, as of 30 October 2022):
Currently there are 43 Regional Rural Banks in India, as of 1 April 2020:
Jammu and Kashmir
Currently there are 7 Nationalized Insurance Companies (Government Shareholding power denoted in %, as of 1 April 2020):
Currently there are 28 Nationalized Financial Market Exchanges in India:
|Sr. No.||Name of the PSU||Headquarters||Refs|
|1||Alcock Ashdown Gujarat Ltd.||Old Port, Bhavnagar|
|2||Gujarat Agro Ind. Corporation Ltd.||Khet Udhyog Bhavan, Opp: High Court, Navrangpura, Ahmedabad – 380 009|
|3||Gujarat Alkalies & Chemicals Ltd. (GACL)||P.O. Petrochemicals – 391346, Distt. Vadodara||GACL|
|5||Gujarat Backward Class Development Corporation Ltd.||Old Sachivalaya, Gandhinagar||GBCDC|
|6||Gujarat Chemical Port Ltd. (GCPL)||2nd Floor, Gunjan Towers, Off Alembic – Gorwa Road,
Subhanpura, Vadodara – 390 023
|7||Gujarat Commuication & Electronics Ltd.||G. I. D. C Industries Estate Makarpura, Vadodara|||
|8||Gujarat Dairy Dev. Corporation Ltd.||Nigam Bhavan, Sector-16, Gandhinagar – 382016|
|9||Gujarat Electricity Board (GEB)||Vidyut Bhacan Race Course, Vadodara – 300 007|
|10||Gujarat Energy Development Agency (GEDA)||Website: www.geda.org.in
E-mail : email@example.com Suraj Plaza II, 2nd Floor, Sayajigunj, Baroda
|11||Gujarat Film Development Corporation (GFDC)||Dr. Jivraj Mehta Bhavan, Block No. 2, 2nd Floor, Gandhinagar|
|12||Gujarat Gopalak Vikas Nigam||Old Vidhansabha Building, Sector – 17, Gandhinagar|
|13||Gujarat Growth Centre Development Corporation||Udhyog Bhavan, Block No. 5, 4th Floor, Gandhinagar|
|14||Gujarat Housing Board ( GHB)||Near Vijaynagar, New Vadaj Ahmedabad – 13|
|15||Gujarat Industries Development Corporation (GIDC)||Block – 4, 2nd floor, Udyog Bhavan, Sector-11, Gh Road, Gandhinagar.|
|16||Gujarat Industrial Investment Corporation (GIIC)||Website: www.giicindia.com
E-mail : firstname.lastname@example.org Corporate Office: Udyog Bhavan, Block No. 11 & 12, Sector 11, Gandhinagar – 382 017
|17||Gujarat Industrial Power Company Ltd.||P.O. Petrochemical – 391346, District Vadodara|
|18||Gujarat Infrastructure Development Board (GIDB)||8TH Floor, Block No. 18, Udyog Bhavan,
Sector – 11, Gandhinagar – 382 017, Gujarat, India
|19||Gujarat Landless Labourers & Halpati Housing Board||Block No. 1, 3rd floor, Old Sachivalaya, Gandhinagar|
|20||Gujarat Maritime Board (GMB)||Opp. Air Force Station, Sector – 10-B, CHH Road, Gandhinagar|
|21||Gujarat Minorities Finance & Development Corporation||Old Sachivalaya, Block No-11, Gandhinagar|
|22||Gujarat Municipal Finance Board||Ishita Towers Community Hall Navrangpura, Ahmedabad – 380 009|
|23||Gujarat Narmada Fertilizers Corporartion||P.O. Narmadanagar – 392015, Dist. Bharuch, Gujarat, INDIA|
|24||Gujarat Pollution Control Board (GPCB)||Nr. New Sachivalaya, Sector – 10 , Gandhinagar – 382 018|
|25||Gujarat Ports Infrastructure Development||Finance Corporation Ltd.
Gujarat Maritime Board Complex, Opp. Air Force Station, Sector – 10 B, Gandhinagar
|26||Gujarat Power Corporation Ltd. (GPCL)||Udyog Bhavan, Gandhinagar|
|27||Gujarat Rural Housing Board||Capital Project Building , 2nd floor, Sector – 16, Gandhinagar – 15.|
|28||Gujarat Safai Kamdar Development Corporation||Block No. 3, Dr. Jivraj Mehta Bhavan, Gandhinagar|
|29||Gujarat Scheduled Castes Development Corporation Ltd.||Block No.10, 2nd Floor, Old Sachivalaya, Gandhinagar|
|30||Gujarat Sheep and Wool Dev. Corporation Ltd.||Block No.18, 5th Floor, Udyog Bhavan, Gandhinagar – Sector – 11|
|31||Gujarat Slum Clearance Board||M.S. Building , 2nd Floor, Lal Darwaja, ‘C’ Block, Ahmedabad – 380 001|
|32||Gujarat Small Industries Corporation Ltd.||Block No. 6 and 8, 6th floor, Udyog Bhavan, Sector – 11, Gandhinagar.|
|33||Gujarat State Civil Supply Corporation (GSCSC)||Sector – 10-B, Gandhinagar|
|34||Gujarat State Construction Corporation||G 1-201, Sector – 30, Gandhinagar|
|35||Gujarat State Electricity Corporation Limited (GSECL)||Vidhyut Bhavan, Race Course, Vadodara – 390 015.|
|36||Gujarat State Export Corporation Ltd.||Gujarat Chambers Building, Ashram Road, Ahmedabad|
|37||Gujarat State Financial Corporation||Udhyog Bhavan, Block No.10, 3rd floor, Gandhinagar|
|38||Gujarat State Financial Services Ltd. (GSFS)||J62, 6th floor, City Centre, Near Swastik Char Rasta, Navrangpura, Ahmedabad|
|39||Gujarat State Forest Development Corporation Ltd.||G-1, 198/4, Sector – 30, Gandhinagar|
|40||Gujarat State Handicraft Development Corporation Ltd.||Udyog Bhavan Sector-11, Block no. 17, 3rd Floor, Gandhinagar|
|41||Gujarat State Handloom Development Corporation Ltd .||Udhyog Bhavan, Block No – 18, 3rd Floor, Sector-11, Gandhinagar – 382 011|
|42||Gujarat State Investments Ltd.||H. K. House, 6th Floor, Ashram Road, Ahmedabad – 380 009|
|43||Gujarat State Land Development Corporation Ltd.||Bal Ram Bhavan, Sector – 10/A Gandhinaagr|
|44||Gujarat State Mineral Development Corporation (GMDC)||Khanij Bhavan, Near Manav Mandir, 132 Ring Road, Vastrapur, Ahmedabad – 52|
|45||Gujarat State Petroleum Corporation Ltd. (GSPC)||E-mail : email@example.com
Block No.15, 2nd Floor, Udyog Bhavan , Sector-11, Gandhinagar
|46||Gujarat State Police Housing Corporation Ltd.||Civil Supplies Corporation Building, “Ch” Road, Sector – 10/A, Gandhinagar – 382 010|
|47||Gujarat State Road Development Corporation||Nirma Bhavan, Sector – 10/A, Gandhinagar|
|48||Gujarat State Road Development Corporation Ltd.||Nirma Bhavan, Sector – 10 B, Gandhinagar.|
|49||Gujarat State Road Transport Corporation (GSTC)||Central Office, Vahan Vyavhar Bhavan, Astodiya Darwaja, Ahmedabad – 382 022|
|50||Gujarat State Rural Development Corporation Ltd.||Block No. 7, Ground Floor, Old Sachivalaya, Gandhinagar|
|51||Gujarat State Rural Industries Marketing Corporation Ltd.||Sector – 17, Udyog Bhavan, Gandhinagar|
|52||Gujarat State Seed Corporation Ltd.||Bij Bhavan, Sector-10 Gandhinagar – 382 010|
|53||Gujarat State Warehouse Corporation Ltd.||Anand Shanti Sadan Estate, Opp. Dinbai Tower, Mirzapur, Ahmedabad – 380001|
|54||Gujarat Thakor & Koli Vikas Nigam||Old Vidhan Sabha Building, Sector – 17, Gandhinagar|
|55||Gujarat Tribal Development Corporation||Block No. 10, Jeevraj Mehta Bhavan, Gandhinagar – 382 010|
|56||Gujarat Urban Development Corporation Ltd.||Abhishek Building, 1st Floor, Nr. Hotel Haveli, Gandhinagar|
|57||Gujarat Water Resources Development Corporation Ltd.||Sector – 10-A, Near Seeds Corporation
|58||Gujarat Water Supply Sewerage Board||Sector – 10, Jal Sewa Bhavan, Gandhinagar|
|59||Gujarat Women’s Economic Development Corporation Ltd.||Udyog Bhavan, Sector – 11, Gandhinagar|
|60||Sardar Sarovar Narmada Nigam Ltd. (SSNNL).||Block No 12, 1st floor, New Sachivalaya , Gandhinagar|
|61||Technical Examination Board||3rd floor, Block no. 2, Old Sachivalaya, Gandhinagar|
|62||Tourism Corporation of Gujarat Limited||Nigam Bhavan Sector – 16, Gandhinagar|
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