PSU companies

Public Sector Undertaking(PSU) companies where the central or state governments have more control than other private entities. They are classified as three kinds.

• CPSE(Central Public Sector Enterprises)
• PSB(Public Sector Banks)
• SLPE(State level public enterprise)

There are around 280 central public sector companies in India. Ministry of Heavy Industries and Public Enterprises control around 50 or majority of public sector enterprises. (CCI) Cement Corporation Of India) or BHEL(Bharat Heavy Electoricals Limited) are some examples. Other ministries own the rest of them. Air India Limited is administered by civil aviation ministry. Coal India Limited is administered by coal ministry. Steel Authority of India Limited is controlled by steel ministry. Many PSEs are listed on stock exchange like other private companies are.

They are divided into several kinds based on their performance. Maharatnas, navratnas and miniratnas.  Navratnas are companies that have competitive advantage and potential to become global players. Nav in Navratnas means not nine but new. They can invest up to 1000 crores without taking government permission. Miniratnas are also profit making companies or have potential to profit making but are not ready to perform at global level. Miniratnas are again divided into two subcategories. The high rank ones make 30 crores profit at least in one of the three past years and can make investment up to 500 crores without taking government permission. The miniratnas second category can make up to 300 crores investment without taking government permission.

Maharatnas are large Navratnas that have real power to excel in domestic and global market and government can give more autonomy for them to expand. They have annual profit of 2500 crores. They have around 25000 crores turnover and net worth of 10,000 crores. They can make investment up to 5000 crores without taking government permission. Currently seven companies, BHEL, SAIL, Coal India Ltd, GAIL(Gas authority of India Limited), IOCL(India Oil Corporation Limited), ONGC(Oil and Natural Gas Corporation Limited) and NTPC (National Thermal Power Plant) qualify for this category. Their performance will be reviewed annually by inter ministry committee to make decision on whether to continue the status.

References

Public Sector Undertaking in India

List of PSEs in India

BSE PSUs disinvestment information

Department of Public Enterprises