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Public Sector Undertakings In India
A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. In a PSU company, the majority of the shares 51% or more are owned by the central or state government. Central public sector enterprises are administered by the ministry of heavy industries and public enterprises.
These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU. PSUs strictly may be classified as central public sector enterprises (CPSEs) or state level public enterprises (SLPEs). In 1951 there were just five enterprises in the public sector in India, but in March 1991 this had increased to 246.
Certain public sector undertakings have been awarded additional financial autonomy. These companies are “public sector companies 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 Gupta emperor Vikramaditya and Mughal emperor Akbar, as the collective name for nine extraordinary courtiers at their respective courts.
In 2010, the government established the higher Maharatna category, which raises a company’s investment ceiling from Rs. 1,000 crore to Rs. 5,000 crore. The Maharatna firms can now decide on investments of up to 15 percent of their net worth in a project while the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval. Two categories of Miniratnas afford less extensive financial autonomy.
Classifications of public sector undertaking (PSU)
The PSUs in India are categorized as,
- Miniratna Category-I
- Miniratna Category-II
Guidelines for awarding Ratna status
Eligibility: Three years with an average annual net profit of over Rs. 2500 crore, OR Average annual Net worth of Rs. 10,000 crore for 3 years, OR Average annual Turnover of Rs. 20,000 crore for 3 years (against Rs 25,000 crore prescribed earlier)
Benefits for investment: Rs. 1,000 crore – Rs. 5,000 crore, or free to decide on investments up to 15% of their net worth in a project
Eligibility: A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., AND A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.
Benefits for investment: up to Rs. 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 Rs. 1,000 crores).
Eligibility: Have made profits continuously for the last three years or earned a net profit of Rs. 30 crore or more in one of the three years
Benefits for investment: up to Rs. 500 crore or equal to their net worth, whichever is lower.
Eligibility: Have made profits continuously for the last three years and should have a positive net worth.
Benefits for investment: up to Rs. 300 crore 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).
As on 31st May 2019, there are 8 Maharatnas, 16 Navratnas, and 75 Miniratnas. There were 339 CPSEs (excluding insurance companies). Of these, 82 enterprises were yet to commence commercial operations. Remaining 257 were operating enterprises (including 179 scheduled CPSEs ).
The List of the Central Public Sector Enterprises (CPSEs)
List of Maharatnas
Maharatna Scheme was introduced for Central Public Sector Enterprises (CPSEs), with effect from 19th May, 2010, in order to empower mega CPSEs to expand their operations and emerge as global giants. The objective of the scheme is to delegate enhanced powers to the Boards of identified large-sized Navratna CPSEs so as to facilitate the expansion of their operations, both in domestic as well as global markets.
Following CPSEs have been identified as Maharatnas:
- National Thermal Power Corporation (NTPC)
- Oil and Natural Gas Corporation (ONGC)
- Steel Authority of India Limited (SAIL)
- Bharat Heavy Electricals Limited (BHEL)
- Indian Oil Corporation Limited (IOCL)
- Coal India Limited (CIL)
- Gas Authority of India Limited (GAIL)
- Bharat Petroleum Corporation Limited (BPCL)
Under this scheme, the Government has delegated higher powers to CPSEs having a comparative advantage and the potential to become global players. Presently, the Navratna CPSEs are:-
- Bharat Electronics Limited (BEL)
- Container Corporation of India (CONCOR)
- Engineers India Limited (EIL)
- Hindustan Aeronautics Limited (HAL)
- Hindustan Petroleum Corporation Limited (HPCL)
- Mahanagar Telephone Nigam Limited (MTNL)
- National Aluminium Company (NALCO)
- National Buildings Construction Corporation (NBCC)
- National Mineral Development Corporation (NMDC)
- Neyveli Lignite Corporation Limited (NLCIL)
- Oil India Limited (OIL)
- Power Finance Corporation[PFC]
- Power Grid Corporation of India Limited(PGCIL)
- Rashtriya Ispat Nigam Limited
- Rural Electrification Corporation[REC]
- Shipping Corporation of India (SCI)
The List of Miniratnas (I and II)
In October 1997, the Government decided to grant enhanced autonomy and delegation of financial powers to some other profit-making companies (other than the Navratnas) subject to certain eligibility conditions and guidelines to make them efficient and competitive. These categories were Category I and Category II
- Category I CPSEs should have made a profit in the last three years continuously, the pre-tax profit should have been Rs. 30 crores or more in at least one of the three years and should have a positive net worth.
- Category II CPSEs should have made a profit for the last three years continuously and should have a positive net worth.
List of Miniratna-I
- Airports Authority of India (AAI)
- Antrix Corporation
- Balmer Lawrie
- Bharat Coking Coal Limited[BCCL]
- Bharat Dynamics Limited[BDL]
- Bharat Earth Movers Limited[BEML]
- Bharat Sanchar Nigam Limited (BSNL)
- Bridge and Roof
- Central Warehousing Corporation
- Central Coalfields Limited
- Chennai Petroleum Corporation[CPCL]
- Cochin Shipyard[CSL]
- Dredging Corporation of India[DCI]
- Educational Consultants India[EDCIL]
- Kamarajar Port
- Garden Reach Shipbuilders & Engineers[GRSE]
- Goa Shipyard[GSL]
- Hindustan Copper[HCL]
- HLL Lifecare
- Hindustan Newsprint
- Hindustan Paper
- Housing and Urban Development Corporation
- India Tourism Development Corporation[ITDC]
- India Trade Promotion Organisation[ITPO]
- Indian Rare Earths[IREL]
- Indian Railway Catering and Tourism Corporation[IRCTC]
- Indian Renewable Energy Development Agency
- Ircon International
- Kudremukh Iron Ore Company
- Mazagon Dock Limited
- Mahanadi Coalfields[MCL]
- Mangalore Refinery and Petrochemicals Limited[MRPL]
- Mishra Dhatu Nigam
- MMTC Ltd.
- MSTC Limited
- National Fertilizers[NFL]
- National Small Industries Corporation Limited
- National Seeds Corporation
- NHPC Ltd.
- Northern Coalfields[NCL]
- North Eastern Electric Power Corporation Limited[NEEPCL]
- Numaligarh Refinery
- ONGC Videsh
- Pawan Hans
- Projects and Development India Limited[PDIL]
- RailTel Corporation of India
- Rail Vikas Nigam Limited
- Rashtriya Chemicals & Fertilizers[RCF]
- SJVN Ltd.
- Security Printing and Minting Corporation of India
- South Eastern Coalfields[SECL]
- State Trading Corporation of India
- Telecommunications Consultants India[TCIL]
- THDC Ltd.
- Western Coalfields[WCL]
- Water and Power Consultancy Services
- Mineral Exploration Corporation Limited
List of Miniratna-II
- Artificial Limbs Manufacturing Corporation of India
- Bharat Pumps & Compressors[BPC]
- Broadcast Engineering Consultants India
- Central Mine Planning and Design Institute
- Central Railside Warehouse Company
- Engineering Projects
- FCI Aravali Gypsum and Minerals (India) Limited
- Ferro Scrap Nigam Limited
- HMT (International) Ltd.
- Indian Medicines & Pharmaceuticals Corporation Limited
- National Film Development Corporation of India[NFDC]
- PEC Ltd.
- Rajasthan Electronics & Instruments Limited
- Ministry of new and renewable energy (MNRE) and Solar Energy Corporation of India Ltd (SECI)
To view, the master list of the Central Public Sector Enterprises (CPSEs) click here
All these companies regularly post jobs for the technical and non-technical posts, kindly visit their career page to explore the career opportunities available with them. We also regularly post the jobs from all these companies, you can check the latest Government Engineering Jobs posted on our website, click here to view the latest jobs.