Digging Deeper into the PSU Acronym

1) The term PSU stands for Public Sector Undertaking. These are corporations or enterprises that are owned by the Indian government. PSUs are established under the government's banner to undertake commercial operations. However, their primary focus isn't just on profit-making but also on contributing to national development and bolstering the country's economy.

In most PSUs, the lion's share of the company's equity, that is, 51% or more, is held by either the central or state government. The activities of all PSUs are supervised by the Comptroller and Auditor General (CAG) of India.

Tracing the Origins of PSU

• Post-independence in 1947, India was predominantly an agricultural nation with a weak industrial base.
• The first Industrial Policy Resolution, announced in 1948, laid down a detailed blueprint for industrial development and strategy.
• The second five-year plan of India (1956–61) and the 1956 Industrial Policy Resolution emphasized the formation of state-owned enterprises, aligning with Nehru's national plan of industrialization.
• Dr V. Krishnamurthy, often referred to as the Father of Public Sector Undertakings in India, took forward Nehru’s vision.

Categories of PSUs

PSUs can be divided into three broad categories:

• SLPEs – State Level Public Enterprises
• CPSEs – Central Public Sector Enterprises
• PSBs – Public Sector Banks

Renowned PSUs in India

• ONGC – Oil and Natural Gas Corporation
• IOCL – Indian Oil Corporation Limited
• BPCL – Bharat Petroleum Corporation Limited
• LIC – Life Insurance Corporation of India
• PNB – Punjab National Bank
• HAL – Hindustan Aeronautics Limited
• EIL – Engineers India Limited
• BEL – Bharat Electronics Limited
• NHPC – National Hydroelectric Power Corporation
• BSNL – Bharat Sanchar Nigam Limited