What is the full form of PSU?

The full form of PSU is Public Sector Undertaking. PSUs are known as state-owned firms or enterprises in India. The government establishes PSUs under its name and guidelines for conducting business. Such state-owned businesses are less concerned with turning a profit and more focused on creating and growing the country’s economy.

In PSUs with 51% or more equity, the central or state government manages the majority of the company’s stock. All PSUs are under the scrutiny of India’s CAG (Comptroller and Auditor General).

• India attained independence in 1947 as mostly an agrarian nation with a shaky industrial base.
• The first Industrial Policy Resolution was published in 1948 and provided a detailed description of the approach and policy for industrial development.
• To support Nehru’s national industrialization policy, establishing state-owned firms was emphasised in India’s second five-year plan (1956–1960) and the 1956 Industrial Policy Resolution.
• Dr V. Krishnamurthy, the father of India’s public sector enterprises, carried out Nehru’s vision.

One can classify PSUs into three groups.

1. PSEs – Public Sector Enterprises
2. CPSEs – Central Public Sector Enterprises
3. PSBs – Public Sector Banks

1. CIL – Coal India Limited
2. HPCL – Hindustan Petroleum Corporation Limited
3. BHEL – Bharat Heavy Electricals Limited
4. FCI – Food Corporation of India
5. SBI – State Bank of India
6. SAIL – Steel Authority of India Limited
7. GAIL – Gas Authority of India Limited
8. NTPC – National Thermal Power Corporation
9. PGCI – Power Grid Corporation of India
10. MTNL – Mahanagar Telephone Nigam Limited