Full Form of PSU | PSU Full Form | What is PSU | About PSU
Full Form of PSU is Public Sector Undertaking: PSU stands for Public Sector Undertaking. The government-owned firms are called Public Sector Undertakings (PSUS ) in India. PSUS are created by the govt to undertake industrial projects under its own banner. These government-owned firms are less involved regarding creating profits and additional targeted towards nation building and improving the economy of the country. The majority of the corporate equity (51% or more) in psus is in hand by the central government or the state government or part by the central government and partly by the authorities. The comptroller and Auditor General of India (CAG) audits all PSUS . It’s the authority to appoint the Auditor and direct him to follow the right audit method to audit the accounts of the PSU.
PSUS will be divided into 3 groups:
Central Public Sector Enterprises (cpses)
Public Sector Enterprises (pses)
Public Sector Banks (PSB’s)
According to Wikipedia:
A state-owned enterprise in India is called a Public Sector Undertaking (PSU) or a Public Sector Enterprise. 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 may be classified as Central Public Sector Enterprises (CPSEs), public sector banks (PSBs) or State Level Public Enterprises (SLPEs). CPSEs are companies in which the direct holding of the Central Government or other CPSEs is 51% or more. They are administered by the Ministry of Heavy Industries and Public Enterprises.
When India achieved independence in 1947, India was primarily an agricultural country with a weak industrial base. The national consensus was in favour of the rapid industrialisation of the economy which was seen as the key to economic development, improving living standards and economic sovereignty. Building upon the Bombay Plan, which noted the requirement of government intervention and regulation, the first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development. Subsequently, the Planning Commission was constituted in March 1950 and the Industrial (Development and Regulation) Act was enacted in 1951 with the objective of empowering the government to take necessary steps to regulate industrial development.
Some of the popular psus of India are listed below:
Food Corporation of India
Oil & gas Corporation limited
Mahanagar telephone Nigam limited
Indian Oil Corporation Limited
Power Grid Corporation of India
Bharat Heavy Electricals Limited
Coal India Limited
State Bank of India
National Thermal Power Corporation
Bharat Petroleum Corporation limited