PSU Exams: In India, Public Sector Undertakings (PSUs) play a crucial role in the country’s economic growth and development. These government-owned corporations span various sectors and contribute significantly to India’s industrialization, employment generation, and revenue generation. PSUs are classified into different categories based on their ownership, functional areas, and levels of autonomy. Let’s delve into the world of Indian PSUs and explore their categories.
1. Classification Based on Ownership:
a. Central Public Sector Enterprises (CPSEs): CPSEs are government-owned corporations where the majority (51% or more) of the company’s shares are held by the central government. These entities operate in diverse sectors such as energy, manufacturing, finance, and more. Some prominent CPSEs include Bharat Heavy Electricals Limited (BHEL), Oil and Natural Gas Corporation (ONGC), and Steel Authority of India Limited (SAIL).
b. State Public Sector Enterprises (SPSEs): Similar to CPSEs, SPSEs are owned by state governments. These entities are responsible for implementing state-level policies and contributing to the local economy. Examples of SPSEs include Kerala State Industrial Development Corporation (KSIDC), West Bengal State Electricity Distribution Company Limited (WBSEDCL), etc.
2. Classification Based on Functional Areas:
a. Maharatnas: This is a category of CPSEs that have been identified by the government as leaders in their respective sectors. These companies enjoy greater financial autonomy and are empowered to make investment decisions up to a certain limit without seeking government approval. Some well-known Maharatnas are Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Coal India Limited (CIL).
b. Navratnas: Navratna CPSEs are enterprises that have been granted more autonomy in terms of decision-making and financial management. They have the authority to make investments and take certain operational decisions without requiring frequent government intervention. Examples of Navratnas include National Thermal Power Corporation (NTPC), Hindustan Aeronautics Limited (HAL), and Oil India Limited (OIL).
c. Miniratnas: Miniratna CPSEs are relatively smaller public sector enterprises. They have been categorized into two categories: Category I and Category II. Category I Miniratnas have more autonomy in financial matters compared to Category II Miniratnas. Examples of Miniratnas include MSTC Limited, FCI Aravali Gypsum & Minerals India Limited (FAGMIL), and PEC Limited.
3. Other Classifications:
a. Schedule ‘A,’ ‘B,’ ‘C,’ and ‘D’ CPSEs: This classification is based on the degree of financial autonomy and the extent of government control. Schedule ‘A’ CPSEs are fully autonomous, while ‘B,’ ‘C,’ and ‘D’ CPSEs have varying levels of government control.
b. Strategic and Non-Strategic CPSEs: The government has categorized CPSEs as either strategic or non-strategic based on their importance to the country’s security, economy, or public welfare. Strategic CPSEs are those that are considered critical and are less likely to be privatized.
c. Holding and Subsidiary Companies: Some CPSEs function as holding companies, owning and controlling other subsidiary companies. This structure allows for efficient management and coordination among various entities under the same umbrella.
Maharatna Companies in India:
As of 2023, India has 13 Maharatna companies, which are among the Central Public Sector Enterprises (CPSEs) listed by the government.
1. Bharat Heavy Electricals Limited(BHEL) is an engineering and manufacturing company. It plays a vital role in various industries by providing design, engineering, construction, testing, commissioning, and servicing for a diverse range of products and services. With a vast portfolio of more than 180 product offerings, BHEL caters to the crucial sectors of the economy.
2. Bharat Petroleum Corporation Limited (BPCL) is a government-owned public sector undertaking, under the Ministry of Petroleum and Natural Gas, Government of India. BPCL operates three refineries located in Bina, Kochi, and Mumbai. It is the second-largest government-owned downstream oil producer in India, with its operations supervised by the Ministry of Petroleum and Natural Gas.
3. Coal India Limited (CIL) is a major central public sector undertaking owned by the Ministry of Coal, Government of India. Its headquarters are located in Kolkata. CIL holds the distinction of being the largest government-owned coal producer globally and is also the seventh largest employer, with a workforce of nearly 272,000 employees.
4. Gas Authority of India Ltd.(GAIL), is a central public sector undertaking under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. The company operates in various business segments, including natural gas, liquid hydrocarbon, liquefied petroleum gas transmission, petrochemical, city gas distribution, renewable energy (solar & wind), exploration and production, petrochemicals, GAILTEL, and electricity generation. GAIL was bestowed with the prestigious MahaRatna status by the Government of India on 1st February 2013.
5. Hindustan Petroleum Corporation Limited (HPCL), also known as HP, is a subsidiary of Oil and Natural Gas Corporation (ONGC), which is under the ownership of the Ministry of Petroleum and Natural Gas, Government of India. The company’s headquarters are located in Mumbai. On 24th October 2019, HPCL was designated as a Maharatna company.
6. Indian Oil Corporation Limited (IOCL) is an Indian multinational oil and gas company owned by the Ministry of Petroleum and Natural Gas, Government of India. The company’s headquarters are based in New Delhi. Indian Oil’s operations are monitored by the Ministry of Petroleum and Natural Gas. It is recognized as the largest government-owned oil producer in India, leading in terms of capacity and revenue.
7. National Thermal Power Corporation (NTPC), is a central Public Sector Undertaking in India, owned by the Ministry of Power and the Government of India. The company is primarily involved in the generation of electricity and related activities. Its headquarters are located in New Delhi. NTPC’s main function is the generation and distribution of electricity to State Electricity Boards in India.
8. Oil and Natural Gas Corporation Limited (ONGC) is an Indian central public sector undertaking owned by the Ministry of Petroleum and Natural Gas, Government of India. Its headquarters are situated in New Delhi. Established on 14th August 1956 by the Government of India, it accounts for approximately 70 percent of India’s domestic production of crude oil and about 84 percent of natural gas. In November 2010, the Government of India awarded ONGC the prestigious Maharatna status.
9. Power Finance Corporation Ltd. (PFC) is a significant Indian central public sector undertaking under the Ministry of Power, Government of India. Established in 1986, it serves as the financial backbone of the Indian power sector. PFC’s net worth as of 30th September 2018 stands at INR 383 billion. It holds the distinction of being the 8th highest profit-making Central Public Sector Undertaking (CPSU) according to the Department of Public Enterprises Survey for FY 2017–18. PFC is India’s largest Non-Banking Financial Company (NBFC) and the country’s largest infrastructure finance PSU. On 12th October 2021, the Government raised PFC’s status from ‘Navratna’ to ‘Maharatna’ PSU.
10. Power Grid Corporation of India Limited is a significant Indian central public sector undertaking owned by the Ministry of Power, Government of India. Its primary focus is on the transmission of bulk power across various states in India. The company’s headquarters are located in Gurugram. Power Grid plays a crucial role in the power sector as it transmits approximately 50% of the total power generated in India through its extensive transmission network.
11. Rural Electrification Corporation Limited (REC), is a subsidiary of Power Finance Corporation Limited (PFC), which in turn is owned by the Ministry of Power, Government of India. REC’s primary function is to finance and support power projects throughout India. It offers loans to various entities, including Central/State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs, and Private Power Developers.
12. Steel Authority of India Limited (SAIL) is a central public sector undertaking headquartered in New Delhi, India. It operates under the ownership of the Ministry of Steel, Government of India, and has a significant annual turnover of Rs. 105,398 crore (US$13 billion) for the fiscal year 2022-23. Founded on 24th January 1973, with a substantial annual production of 18.29 million metric tons, it holds the distinction of being the largest government-owned steel producer.
13. Oil India Limited (OIL) is a central public sector undertaking involved in the exploration, development, and production of crude oil and natural gas, as well as the transportation of crude oil and production of liquid petroleum gas. Its operations are overseen by the Ministry of Petroleum and Natural Gas. The company is headquartered in Duliajan, Assam, and has offices in Duliajan, Noida, Guwahati, and Jodhpur. It was elevated as to the Maharatna status on recommendation from the Finance ministry of India government on August 3, 2023.
Navratna Companies in India
1. Bharat Electronics Limited
2. Container Corporation of India Limited
3. Engineers India Limited
4. Hindustan Aeronautics Limited
5. Mahanagar Telephone Nigam Limited
6. National Aluminium Company Limited
7. NBCC (India) Limited
8. NMDC Limited
9. NLC India Limited
10. Oil India Limited
11. Power Finance Corporation Limited
12. Rashtriya Ispat Nigam Limited
13. Rural Electrification Corporation Limited
14. Shipping Corporation of India Limited
List of Miniratna Category – I CPSEs
1. Airports Authority of India
2. Antrix Corporation Limited
3. Balmer Lawrie & Co. Limited
4. Bharat Coking Coal Limited
5. Bharat Dynamics Limited
6. BEML Limited
7. Bharat Sanchar Nigam Limited
8. Bridge & Roof Company (India) Limited
9. Central Warehousing Corporation
10. Central Coalfields Limited
11. Central Mine Planning & Design Institute Limited
12. Chennai Petroleum Corporation Limited
13. Cochin Shipyard Limited
14. EdCIL (India) Limited
15. Kamarajar Port Limited
16. Garden Reach Shipbuilders & Engineers Limited
17. Goa Shipyard Limited
18. Hindustan Copper Limited
19. HLL Lifecare Limited
20. Hindustan Newsprint Limited
21. Hindustan Paper Corporation Limited
22. Housing & Urban Development Corporation Limited
23. HSCC (India) Limited
24. India Tourism Development Corporation Limited
25. Indian Rare Earths Limited
26. Indian Railway Catering & Tourism Corporation Limited
27. Indian Railway Finance Corporation Limited
28. Indian Renewable Energy Development Agency Limited
29. India Trade Promotion Organization
30. IRCON International Limited
31. KIOCL Limited
32. Mazagaon Dock Shipbuilders Limited
33. Mahanadi Coalfields Limited
34. MOIL Limited
35. Mangalore Refinery & Petrochemical Limited
36. Mineral Exploration Corporation Limited
37. Mishra Dhatu Nigam Limited
38. MMTC Limited
39. MSTC Limited
40. National Fertilizers Limited
41. National Projects Construction Corporation Limited
42. National Small Industries Corporation Limited
43. National Seeds Corporation
44. NHPC Limited
45. Northern Coalfields Limited
46. North Eastern Electric Power Corporation Limited
47. Numaligarh Refinery Limited
48. ONGC Videsh Limited
49. Pawan Hans Helicopters Limited
50. Projects & Development India Limited
51. Railtel Corporation of India Limited
52. Rail Vikas Nigam Limited
53. Rashtriya Chemicals & Fertilizers Limited
54. RITES Limited
55. SJVN Limited
56. Security Printing and Minting Corporation of India Limited
57. South Eastern Coalfields Limited
58. Telecommunications Consultants India Limited
59. THDC India Limited
60. Western Coalfields Limited
61. WAPCOS Limited
List of Miniratna Category-II CPSEs
1. Artificial Limbs Manufacturing Corporation of India
2. Bharat Pumps & Compressors Limited
3. Broadcast Engineering Consultants India Limited
4. Central Railside Warehouse Company Limited
5. Engineering Projects (India) Limited
6. FCI Aravali Gypsum & Minerals India Limited
7. Ferro Scrap Nigam Limited
8. HMT (International) Limited
9. Indian Medicines & Pharmaceuticals Corporation Limited
10. MECON Limited
11. National Film Development Corporation Limited
12. Rajasthan Electronics & Instruments Limited
Conclusion:
Public Sector Undertakings (PSUs) in India contribute significantly to the nation’s economic growth and development. Their diverse categories, based on ownership, functional areas, and levels of autonomy, reflect the dynamic nature of India’s industrial landscape. As the Indian economy continues to evolve, PSUs will play a vital role in shaping various sectors and contributing to the country’s progress.