Public Sector Undertaking
Public Sector Undertaking
UNDERTAKING
INTRODUCTION
The government-owned corporations
are termed as Public Sector
Undertakings (PSUs) in India
In a PSU majority (51% or more) of the
paid up share capital is held by central
government or by any state government
or partly by the central governments
and partly by one or more state
governments.
Arms & Ammunition and the allied
items of defence equipments,
defence air-crafts and warships
Atomic Energy (except in the areas
related to the operation of nuclear
power).
Railways transport, air transport etc.
come under PSUs.
ROLE OF PUBLIC SECTOR
UNDERTAKINGS
As agriculture is the backbone of Indian
economy, Public Sector Banks (PSBs)
play a crucial role in pushing the
agricultural economy
They are less concerned with making
profits as compared to private sector.
The Indian Public Sector Undertakings
are legal business entities
A number of PSUs are highly profitable
and denoted as ‘Maharatnas’ and
'Navaratnas'. A prominent example of a
Maharatna company is ONGC.
The Public Sector Undertakings of
Indian Government, number more
than 200 commercially functioning
companies.
These undertakings are divided into
two parts – state and central.
MAHARATNA COMPANIES