Public Sector Undertakings

Explore About PSU

About PSUs

A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, commercial government agency, public sector undertaking or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government. Their legal status varies from being a part of government to stock companies with a state as a regular stockholder. There is no standard definition of a government-owned corporation (GOC) or state-owned enterprise (SOE), although the two terms can be used interchangeably. The defining characteristics are that they have a distinct legal form and they are established to operate in commercial affairs. While they may also have public policy objectives, GOCs should be differentiated from other forms of government agencies or state entities established to pursue purely non-financial objectives.

Government-owned corporations are common with natural monopolies and infrastructure such as railways and telecommunications, strategic goods and services (mail, weapons), natural resources and energy, politically sensitive business, broadcasting, demerit goods (alcohol) and merit goods (healthcare).

In India, a government-owned corporation is termed as a Public Sector Undertaking (PSU). This term is used to refer to companies in which the government (either the federal Union Government or the many state or territorial governments, or both) own a majority (51 percent or more) of the company equity. There are 251 PSU companies in India as of 2012.

Some examples include:

  • Air India
  • Balmer Lawrie
  • Bharat Electronics Limited
  • Bharat Heavy Electricals Limited
  • Bharat Petroleum
  • Bharat Sanchar Nigam Limited
  • Bank of India
  • Biotech Consortium India Limited
  • Coal India Limited
  • Engineers India Limited
  • Cotton Corporation of India
  • Electronics Corporation of Tamil Nadu
  • Engineering Projects India Limited (EPIL)
  • Food Corporation of India
  • GAIL
  • Heavy Engineering Corporation
  • Hindustan Aeronautics Limited
  • Hindustan Cables
  • HMT Limited
  • Indian Oil Corporation
  • Indian Telephone Industries Limited
  • Jute Corporation of India Limited
  • State Bank of India
  • Mahanagar Telephone Nigam Limited
  • Mazagon Dock Limited
  • Modern Food Industries
  • NTPC Limited
  • Nuclear Power Corporation of India Ltd
  • Oil and Natural Gas Corporation
  • Power Grid Corporation of India
  • State Bank of India
  • Steel Authority of India Limited
  • Tamil Nadu Electricity Board
  • Tamil Nadu State Transport Corporation
  • Kerala State Road Transport Corporation

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