PSU Full Form

The PSUs or the Public Sector Undertakings own companies that are dedicated towards the building of the nation, little do they think of their own profit motive. These are the government-owned enterprises, which are sworn to the betterment of the society by increasing job opportunities, by investing more in social infrastructure, also by taking over enterprises who are running at loss and launching them with the power and finance of the government and thus known as ‘government-owned enterprises.’

In these enterprises, the government has more than 50% of the voting rights, and hence the company is under a State Government or the Central Government. In this section, we will learn about the long-form of PSU, PSU full meaning, PSU company full form, and all other related aspects on the topic. 

PSU Full Form

PSU long-form is Public Sector Undertakings. They are government-owned enterprises hence, government PSU full form will be the same expansion, it is no different. 

There are many people who work in PSUs, they have PSU Job, hence PSU job full form will be the same as Public Sector Undertakings Job which means a job in these government-owned industries, they function according to the government and they keep 0 profit motive. They might be working as Management Trainees or Engineers in OPTCL or MECON Limited (Public Sector Companies) so they have PSU jobs and they work for the benefit of the company. 

So far, we have discussed PSU Long-form, Government PSU full form, PSU Job and also, we have presented a gist of what PSUs actually are. Furthermore, we will talk vividly about PSU, its role, history, and such other knowledgeable facts.

The Government-Owned PSU

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PSU is elongated as Public Sector Undertaking. These are the government-owned corporations that are known as the Public Sector Undertakings (abbreviated as PSUs) in India. These enterprises are created by the government in order to undertake big commercial projects under their own guidance. As said, these government-owned companies are less concerned about earning profits and more determined towards the nation-building process and thereby improving the economy of the country.

The government in these PSUs has 50% or more than 50% equity share or voting rights. These share percentages can be owned by the central government or by the state government or this can be partly by the central government and partly by the state government.

The Comptroller and Auditor General of India (abbreviated as CAG) audits all PSUs. It has the authority to appoint the Auditor and direct him to follow the right audit process to audit the accounts of the PSU.

Know About the 3 Divisions of PSUs

PSUs can be divided mainly into three divisions, namely:

• Public Sector Enterprises (abbreviated as PSEs)

• Central Public Sector Enterprises (abbreviated as CPSEs)

• Public Sector Banks (abbreviated as PSBs)

Hence, we see, all PSUs are not Public Sector Enterprises, but all Public Sector Enterprises are PSUs. PSU is a wide range of Units, while Public Sector Enterprises (PSEs) are just a division of that wide range. 

Now, we will discuss these three divisions in a brief manner.

Public Sector Enterprises – 

PSEs are a government-owned enterprise situated in India. They are a part of the Public Sector Undertaking (PSU) known as Public Sector Enterprise. These enterprises or companies are wholly or partly owned by the Government of India or by one of the many states or any territorial governments or both together in varied parts.

Central Public Sector Enterprises – 

The Central public sector enterprises (which are abbreviated as CPSEs) are those companies that include the direct holding of the Central Government or other CPSEs is 51% or more than 51%. As of the date of 31.3. 2015 there were a total of 298 CPSEs wherein, around 63 enterprises are yet to commence their commercial operation.

Public Sector Banks -  

Public Sector Banks (abbreviated as PSBs) are a major and distinct type of government-owned banks situated in our country. Here a majority stake (more than 50%) is being held by the Ministry of Finance of the Government of India or by the Ministry of Finance of various State Governments of India.

Tracing Back to History 

In 1947 when India became an independent country, it was primarily an agrarian-based entity, with an unstable industrial base. There were only 18 state-owned factories that were previously established to reduce the dependency on the British. With the British Raj electing to leave the agricultural production sector, with commercial Tea processing, the Jute mills, Electricity generation, Banks, Coal mines, Steel mills, the civil engineering funding, were all owned by private individuals, like Jamshedji Tata or via some traded companies on Bombay Stock Exchange. In the 20th century, that is after the Indians got their independence, some followed the movement led by Mahatma Gandhi, to be self-sufficient, to be a largely agrarian, communal village-based community, while others criticized the government system for not establishing sufficient western Style Schools, Public Libraries, Universities, Medical Schools, Hospitals, engineering colleges. They suggested the establishment of these units to infuse rapid growth of the population replicating Britain’s industrialization policy. 

Post-independence ushered industrialization

Slowly, in the post-independence period, the national consensus was in favor of rapid industrialization of the economy. This was the key to economic development, these improved the living standards of the economy and the sovereignty of the country. The first Industrial Policy Resolution announced in the year 1948 laid down broad contours for strategic industrial development. Subsequently, the Industrial (Development and Regulation) Act was enacted in the year 1951 with the main purpose of empowering the government and taking necessary steps for regulating industrial development.  

How and Why PSUs Were Formed?

Our first Prime Minister, Jawaharlal Nehru promoted the economic policy which was based on import substitution and thereby advocating the mixed economy. India's second 5-year plan (1956–60) and the Industrial Policy Resolution of 1956 emphasized the development of public sector enterprises to align with Nehru's national industrialization policy. Nehru’s vision was carried forward by Dr. V. Krishnamurthy who was known as the “Father of Public sector undertakings in India”. 

The plan behind the setting up of PSUs was to accelerate the growth of the core sectors of the economy; in order to serve the equipment which was needed by the strategically important sectors, and also to generate employment and income for the masses. A large number of ‘sick units’ were witnessed to be taken over from the private sector. 

The Ratnas – Public Sector Companies

A certain number of public sector undertakings (PSUs) have been awarded additional financial autonomy. These types of companies are the "public sector companies that have comparative advantages", this generally gives them a greater sense of autonomy to compete in the global market, this supports them to be global giants in the near future".

This was awarded to nine PSUs as ‘Navratna’ status in the year 1997. Originally, the term ‘Navaratna’ meant a talisman that was composed of the nine precious gems. 

In the year 2010, the Government later established the higher Maharatna category, this category raises a company's investment ceiling from ₹1,000 crore to ₹5,000 crores. 

Guidelines for Awarding Ratna Status Are to Be as Follows:

The popular PSUs of India

• Coal India Limited.

• State Bank of India.

• Food Corporation of India.

• Indian Oil Corporation Limited.

• Power Grid Corporation of India.

• Bharat Heavy Electricals Limited.

• National Thermal Power Corporation.

• Bharat Petroleum Corporation Limited.

• Oil & Natural Gas Corporation Limited.

• Mahanagar Telephone Nigam Limited.

Profit Earning Central Public Sector Undertakings

(Net Profit for Financial Year 2019-20)

Loss Facing Central Public Sector Undertakings

(Recorded in the year 2018-19)