Full Form of PSU, Public Sector Undertaking
The “Public Sector Undertakings” is the full form of PSU. A PSU is a firm in which the Central Government or one or more State Governments, either individually or collectively, control management or have the right to choose a majority of directors.
Girijesh Singh5 Oct, 2023
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What is PSU?
A public sector undertaking means a company in which the Central Government, any State Government, or a combination of the Central Government and one or more State Governments holds at least 50% of the paid-up share capital. It includes a company that is a subsidiary of a Government company as defined. A PSU is a firm in which the Central Government or one or more State Governments, either individually or collectively, control management or have the right to choose a majority of directors. PSUs are also called statutory corporations, nationalized corporations, and government-owned and government-owned businesses. The Government of India and one of the several entities own these organizations in full or in part. State or territorial governments own state Public Sector Undertakings (SPSUs), while the Government of India owns Central Public Sector Undertakings (CPSUs).Features of Public Sector Undertakings
The following are the primary traits of public sector undertakings:- Government-funded: The Indian government owns these organizations outright or holds more than 51% of their stock.
- Government management: These organizations are autonomous yet managed and under the jurisdiction of the Indian government.
- Financial independence: These organizations plan and manage their own money, and they are not reliant on the Indian government.
- Public Services: Public sector organisations' main goal is serving the public.
- Useful for a Variety of Sectors: Public Sector Entities support all economic sectors.
- Helpful in Implementing Indian Government Plans: Indian Government uses Public Sector Enterprises to carry out economic plans.
History of a Public Sector Undertaking
Even after independence, India remained an agrarian entity with a weak industrial basis. Eighteen states owned the Indian ordnance manufacturers in the entire country. During the British Raj, the decision was that all agricultural production, including jute mills, processing enterprises, railways, steel mills, banks, coal mines, and electrical utilities, would be entrusted to the private sector. These were just a few major economic firms private-sector businessmen held. Following India's independence, there was widespread support for the industrialization of the Indian economy. The main goal of the Industrial (Development and Regulation) Act was to give the government the authority to take the necessary actions to control the industry. Jawaharlal Nehru was India's first prime minister, and he championed a comprehensive economic program focused on industrialization and import substitution.Category of public sector undertakings
PSUs are of the following three types-- State Level Public Enterprises (SLPEs)
- Central Public Sector Enterprises (CPSEs)
- PSBs stands for Public Sector Banks.
Famous public sector undertakings in India
- CIL - Coal India Limited.
- HPCL - Hindustan Petroleum Corporation Limited.
- BHEL - Bharat Heavy Electricals Limited.
- FCI - Food Corporation of India.
- SBI - State Bank of India.
- SAIL - Steel Authority of India Limited.
- GAIL - Gas Authority of India Limited.
- NTPC - National Thermal Power Corporation.
- PGCIL - Power Grid Corporation of India Limited.
- MTNL - Mahanagar Telephone Nigam Limited.
How many people serve on the Committee on Public Undertakings (COPU)?
The Committee on Public Undertakings (COPU) has 22 members, 15 of whom elected by the Lok Sabha, the lower house of Parliament, and 7 by the Rajya Sabha, the upper house of Parliament.
What is the primary goal of the Public Sector Undertaking?
The primary goal of the Public Sector Undertaking is to improve public services and the country's economic development.
What Is the distinction between a Public Sector Undertaking And a Government Company?
A Public Sector Undertaking is a corporation with more than 51% of its shares owned by the Indian Central, State, or Local Government.
Is the State Bank of India a public-sector enterprise?
SBI is a Public Sector Undertaking because it is an Indian Multinational Public Sector Bank.
Is the Reserve Bank of India a public sector enterprise?
The Reserve Bank of India was originally a privately owned organization, but upon its nationalization in 1949, it became a Public Sector Undertaking.
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