09 Oct 2021
All About Public Sector Undertakings (PSUs) In India | Ekeeda
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“Live life to the fullest and focus on the positives” – quote by Matt Cameron perfectly sums up your career dreams. And jobs in Public Sector Undertakings (PSUs) give us the right platform where one can live all their dreams which they've dreamt in their high school or college life. A good job with limited working hours, good salary, quarters to stay, insured life, job security, pension, gratuity and reputation all this is in your one-stop package – PSU.
However, do you know what PSUs are, how to get selected in India’s top PSU Company, or what is PSU exam, how you can get PSUs jobs through GATE are some of the questions that candidates desperately hunt for answers to? Relax! Ekeeda is here to rescue you. As you read our blog, in couple of minutes you will come to know what is PSU, types of PSU, PSUs through GATE recruitments, its eligibility and much more.
What Is Public Sector Undertakings (PSU)?
PSU stands for Public Sector Undertakings in India and these are government-owned corporations. These Public sector companies represents the ‘Group of Companies’, owned by the union government of India, or one of the many states or territorial governments, or both. PSUs or public sector undertakings in India are very crucial elements that contribute to the economic progress of the nation. These are the companies whose significant paid share capital i.e. 51 per cent or more is owned by the Government of India. PSU definitely brings a promising future to the nation as well its employees and it is one of the most preferred choices for engineering aspirants to secure their jobs and lives.
Why PSUs Were Introduced?
Post-Independence India was dealing with serious socio- economic and financial issues due to long time of slavery, income gap, imbalance of regional economic, and lot of unemployment. Also, insufficient industrial base, not enough investments, and poor infrastructure facilities with untrained human resources, technological struggle everything together tried to cripple the basic framework of running a successful India.
Thus, it’s was Public Sector in India was looked upon as the tool for making self-reliant India and contribute towards the steady economic growth. Over the years, there has been lot of changes and introduction of policies, wherein PSU companies in India could contribute more towards economic welfare and durability of the nation. Along with this, the young and dynamic engineering aspirants could also find an attractive career in these public sector enterprises in India. So, imagine what a promising future it would be, when you get associated to India’s Maharatna, Navaratna or Mini-Ratna PSUs. Wonder what’s this? Well! Wait for a while and you’ll get to know about it. Today, PSUs recruit a large number of candidates every year through GATE Examination. More & more Public Sector Industries are joining this league to exploit young and dynamic engineering potential.
Public Sector Undertakings Classification:
Public Sector undertakings (PSU) can be classified into three following categories:
Central Public Sector Enterprises (CPSEs) –
Public sector companies that are under the direct control of the Central Government or of other CPSEs by 51% or more than 51% of capital share ownership.
Central Public Sector Enterprises in India (CPSEs) are further classified into
Strategic Central Public-sector Enterprises (CPSEs) include the Arms & Ammunition and the defence equipment’s, defence aircraft, and other items related to defence, and in the field of atomic energy and railways transport.
Non-strategic CPSE - The rest of the CPSEs
Public Sector banks (PSBs) –
Banks that are under the direct control of the Central Government or of other PSBs by 51% or more than 51% of capital share ownership.
State Level Public Enterprises (SLPEs) –
Companies that are under the direct control of the State Government or other SLPEs by 51% or more than 51% of capital share ownership.
Types of PSUs
There are three types of public sector companies based on various factors such as income stock exchange and annual revenue:
The PSU statuses are given by the Department of Public Enterprises according to their financial performance and growth. Also, the PSU status will help them provide governing control over financial and administrative matters to a certain extent. It enables them to compete with other market players domestically as well as internationally as well as earn the prestigious titles. These statuses also represent the consistent growth and performance of the company & its employees.
Here is a brief description about various Maharatna companies, Navratna companies, and Miniratna companies.
Maharatna Companies have the highest status under this system. To qualify under the Maharatna status, the company will have to fulfil certain parameters and only then you will be awarded as Maharatna Company.
It should be a Navratna company, so it will be promoted from a Navratna company to a Maharatna company.
The company should have an average annual turnover of INR 20,000 crore during the last three years. The average annual net worth should be INR 10,000 crore.
The Maharatna status enables a company better control of finances and administrative matters. They can expand their operations and emerge as an international player in the field.
The Maharatna company’s status empowers the board to take investment decisions up to INR 5,000 crores as against the previous limit of 1,000 crores, without seeking government approval.
The Maharatna companies are free to decide on investment matters up to 15% of their net worth in a project.
There are eight Maharatna PSU companies in India as listed below:
Bharat Heavy Electricals limited
Bharat Petroleum Corporation Limited
Coal India Limited
GAIL (India) Limited
Indian Oil Corporation Limited
Oil & Natural Gas Corporation Limited
Steel Authority of India Limited
For being a Navratna Company, you will have to fulfil these criteria:
It should be a Miniratna category-1 company and having Schedule ‘A’ status
The record of at least three ‘Excellent’ or ‘very good’ Memorandum of Understanding (MoU) ratings during the last five years.
Being a Navratna company, it empowers PSEs to invest up to 15% of their net worth or INR 1,000 crore on a single project without asking for government approval.
A Navratna company can spend up to 30% of their net worth not exceeding INR 1,000 cr.
A Navratna company can decide to enter into joint ventures, form alliances, and float subsidiaries abroad.
There are 16 Navratna Public Sector Companies
Bharat Electronics Limited
Bharat Petroleum Corporation Limited
Container Corporation of India Limited
Engineers India Limited
Hindustan Aeronautics Limited
Hindustan Petroleum Corporation Limited
Mahanagar Telephone Nigam Limited
National Aluminium Company Limited
National Buildings Construction Corporation Limited
Neyveli Lignite Corporation Limited
Oil India Limited
Power Finance Corporation Limited
Power Grid Corporation of India Limited
Rashtriya Ispat Nigam Limited
Rural Electrification Corporation Limited
Shipping Corporation of India Limited
Miniratnas are divided as Category-I and Category-II
To achieve the Miniratna Category-I status, the CPSE should have made a profit during the last three years continuously.
The amount of pre-tax profit should have been INR 30 crores or more in at least one year of the last three years of counting and should have a positive net worth.
Miniratnas can enter into joint ventures or set subsidiary companies or overseas offices.
List of Miniratna Category - I
Airports Authority of India
Antrix Corporation Limited
Balmer Lawrie & Co. Limited
Bharat Coking Coal Limited
Bharat Dynamics Limited
Bharat Sanchar Nigam Limited
Bridge & Roof Company (India) Limited
Central Warehousing Corporation
Central Coalfields Limited
Chennai Petroleum Corporation Limited
Cochin Shipyard Limited
Dredging Corporation of India Limited
Kamarajar Port Limited
Garden Reach Shipbuilders & Engineers Limited
Goa Shipyard Limited
Hindustan Copper Limited
HLL Lifecare Limited
Hindustan Newsprint Limited
Hindustan Paper Corporation Limited
Housing & Urban Development Corporation Limited
India Tourism Development Corporation Limited
Indian Rare Earths Limited
Indian Railway Catering & Tourism Corporation Limited
Indian Renewable Energy Development Agency Limited
India Trade Promotion Organisation
IRCON International Limited
Mazagaon Dock Limited
Mahanadi Coalfields Limited
Manganese Ore (India) Limited
Mangalore Refinery & Petrochemical Limited
Mishra Dhatu Nigam Limited
National Fertilizers Limited
National Seeds Corporation Limited
Northern Coalfields Limited
North Eastern Electric Power Corporation Limited
Numaligarh Refinery Limited
ONGC Videsh Limited
Pawan Hans Helicopters Limited
Projects & Development India Limited
Railtel Corporation of India Limited
Rail Vikas Nigam Limited
Rashtriya Chemicals & Fertilizers Limited
Security Printing and Minting Corporation of India Limited
South Eastern Coalfields Limited
State Trading Corporation of India Limited
Telecommunications Consultants India Limited
THDC India Limited
Western Coalfields Limited
Miniratna Category - II
The companies under Miniratna category-II, have controlling rights to incur the capital expenditure of up to INR 300 crore or up to 50% of their net worth, whichever is lower, without government approval.
List of Miniratna Category - II
Bharat Pumps & Compressors Limited
Broadcast Engineering Consultants (I) Limited
Central Mine Planning & Design Institute Limited
Central Railside Warehouse Company Limited
Ed. CIL (India) Limited
Engineering Projects (India) Limited
FCI Aravali Gypsum & Minerals India Limited
Ferro Scrap Nigam Limited
HMT (International) Limited
HSCC (India) Limited
Indian Medicines & Pharmaceuticals Corporation Limited
M E C O N Limited
Mineral Exploration Corporation Limited
National Film Development Corporation Limited
National Small Industries Corporation Limited
P E C Limited
Rajasthan Electronics & Instruments Limited
Public Sector Companies: Career Opportunities
PSU companies in India bring the most promising and secured career for millions of engineering aspirants and it’s due to the excellent salary package, various perks, facilities, and other benefits associated with the job. Let’s take a look at how PSUs hire engineering aspirants.
Different PSUs have different eligibility criteria for recruitment based on your educational qualification, age limit, and other factors. Most public sector industries recruit candidates through GATE scores. The applicant should have pursued their B. Tech degree. Other than GATE, there are other ways through which you can get a job in PSU such as:
By securing a job through the GATE exam.
Through NET Exams, either UGC NET or CSIR NET
Direct Selection Process
Let’s discuss them in detail:-
PSU Recruitment through GATE
It is the most important examination if you wish to secure a job in one of the top PSU companies in India. Nowadays, most of the PSUs prefer to choose their candidates based on the GATE performance and if they qualified, there will be further rounds such as Group Discussions, Personal Interviews, and Medical Fitness. Candidates interested in a PSU can apply online once the recruitment is opened by visiting the respective PSU site. Many PSUs are hiring candidates through GATE scores and it’s rising the popularity of the GATE exams. IIT, Kharagpur will conduct the GATE 2022 exam and the official notification has been released. Application form fill-up is in process, so you can visit the official site for more details. Alternatively, you can read our blog:
GATE Registration: How to fill GATE Application Form, Documents Required
PSU Recruitment through NET
Candidates who have qualified NET exam, either UGC NET or CSIR NET, they can utilize their NET scores to get recruited in any of the PSUs.
Direct Selection Process
Sometimes PSUs have their own competitive exams to recruit the candidates. One can prepare for the competitive exams of the respective PSU and apply for the dream job. However, more and more companies are adopting the way of PSUs jobs through GATE exam as their qualification criteria for application for jobs. GATE helps PSUs sort real-talent and judge their technical skills, fundamental concepts and intellectuals.
Why Choose A PSU Career & What Is The GATE Contribution?
There are various reasons to opt for a PSU career such as:
Excellent Salary Package – PSUs offer an attractive salary package from INR 7 lakhs to INR 20 Lakhs per annum. The general age limit set by PSUs is often as low as 25 years and it's really a great opportunity to seize by the young aspirants.
Promotions & Perks – You will get time-bound promotions and various perks, increments in your career span. The 7th pay commission has increased the attractive limit of the promotions. So, definitely, there’s more towards a rewarding career.
Privileges – On successful joining, candidates are entitled to additional benefits as applicable such as Basic Pay + allowance of Basic Pay under Cafeteria Approach (including medical benefits for self and family members), Dearness Allowance, HRA, and retirement benefits & DA which include Contributory Provident Fund, Gratuity, and Superannuation Benefit applicable as per Corporation’s policy in force at that time.
Job Security – Since it’s a government job, one will don’t have to worry about a better tomorrow. All you have to do is work diligently, and enjoy the best facilities for the rest of your lives.
Allowances– You will get allowances for various expenses like mobile phones, laptops, furniture, etc.
Free Medical Insurance– You will get free& full medical insurance for yourself and your family.
Accommodation – Many PSUs provide accommodation as well, so you don’t have to spend money on renting out a property or travel from far away locations for the job.
Paid leaves for studies – You will get paid leaves for higher studies in case you want to study further.
Soft loan terms– You are entitled to get loans with a mere 3-4% interest for a house or a car.
We hope, it’s enough reason to make up your mind to secure job in top Indian PSUs. For GATE 2022 preparation, you can opt for study material from Ekeeda – India’s leading tech educational platform for engineering aspirants. Our GATE online classes are designed by expert faculty from IITs keeping in mind the latest GATE syllabus and trends. What’s More! You will also get access to PDF notes, mock tests, model/previous year papers, and live interactive sessions to clarify your doubts then and there!
So, sign up with Ekeeda and starting your GATE preparation online today!
What Is GATE Contribution for PSUs recruitment?
Nationality – Indian nationals and candidates from Nepal, Bangladesh, Sri Lanka, Ethiopia and UAE will also be eligible to appear.
Bachelor’s degree holder in technology/ engineering/ architecture (10+2+4) / post B.Sc./ post diploma / and final year students.
Master’s degree in Maths/ Science/ Statistics/ computer applications or equivalent and final year students.
Second year and higher year student of four-year integrated master’s degree in technology or engineering.
Fourth and higher year student of five-year integrated master’s degree program or dual degree programs in Engineering or technology.
Candidates qualified through examinations conducted by professional’s societies recognized by UGC / AICTE
Those who have completed section A or equivalent professional courses are also eligible.
Age limit – There is no specific age limit to appear for GATE 2022 exam
Hope you now have clear idea on what is PSUs, What the types of PSUs, how to secure PSUs jobs through GATE and what are the benefits of getting a job at PSUs.
All The Best!
What Is PSU Salary?
Different PSUs will have different salary structures based on the grades and posts. However, the basic component will stay uniform across various PSUs. It offers an attractive salary package from INR 7 lakhs to INR 20 Lakhs per annum. The general age limit set by PSUs is often as low as 25 years and it’s really good considering the young age of the aspirants. Other than the basic salary, candidates are entitled to Allowances, life & health insurance, transportation facility, Reimbursement for medical treatment, newspaper, phone bill, etc., Variable Pay: Performance Related Pay based on individual and organizational performance., Other Benefits like Company Accommodation / Leased Accommodation / HRA, medical facility, group insurance, house building advance, conveyance advance, furnishing advance/ PC advance, etc. and Superannuation Benefits other than Contributory Provident Fund, Gratuity, pension and Post- Retirement Medical Benefits under Defined Contributory Scheme of the company.
What Is PSU Job?
At PSUs, engineering graduates are appointed for the posts that are executive in nature. You will be responsible for carrying out various tasks as per the directions of the senior officials or colleagues in the company. You will be recruited as Engineering Executive Trainee, Assistant Executive Engineer, Management Trainee, Accounts Officer, Medical Laboratory Officer, Scientist, Systems Officer, Engineering Trainee, etc.
What Is The Difference Between PSU And Government Company?
A company-owned, managed, and controlled by the central, state, or local government is termed as public sector undertakings or public sector enterprise. While a government company is a company solely run under the state government or central government.
How Many PSUs Are In India?
There are 277 Central Public Sector Undertakings in India. PSUs are categorized as Maharatna, Navratna, and Mini-Ratna Companies. For a list of PSUs read our complete blog.
Is PSU A Good Career?
Yes! PSU job is a dream come true for millions of aspirants across India. Today's young and dynamic engineers who got PSUs jobs through GATE are settling milestones and heading towards a successful career. With a good salary, excellent facilities, and a better lifestyle, PSUs is surely the way to head your career!
Is It Difficult To Get A Job At PSU?
Once the candidates are shortlisted through the entrance exam or GATE scores, they will have to undergo further selection rounds such as Group Discussion, interviews, Medial Fitness, etc. after which they get recruited by the PSU company. Thus, you can see getting a job at PSU through campus placement doesn't seem like a walk in the park. It's a tough nut to crack!
Is PSU A Government Job?
No! Employees of PSUs cannot be termed as Government employees; since these are partially government undertakings. Government servants are those employees who work directly under the central government or any of the state governments or the Government of a union territory.
Is PSU A Permanent Job?
Well! It is a permanent job; however, you need to perform well, meet the targets and KRA only then you will be promoted ahead. Also, if you are involved in unethical activities, absconding or corruption then you will be fired or need to resign from the posts.
Do PSU Employees Get A Pension?
Yes! Public sector undertakings (PSU) employees will be given 30% of the last salary drawn as their pension. This decision was taken under the budgetary session.
Is GATE Compulsory For PSU?
No! GATE is not compulsory for PSU because sometimes there is a direct selection process. However, experts suggest it's better to apply PSUs through GATE scores and many PSUs are now hiring candidates through GATE marks. IIT, Kharagpur will conduct the GATE 2022 exam.
Which Is The Biggest PSU In India?
India's largest and most profitable PSUs lists include:
Oil & Natural Gas Corporation - 62,296.04
Indian Oil. 42,113.76
Power Grid Corporation. 19,624.78
Bharat Petroleum. 17,058.52
Coal India. 13,792.82
Hindustan Petroleum. 12,944.54
GAIL (India) 8,454.79
How Tough Is GATE For PSU?
Many students think the GATE examination is too tough and an average student won't be able to crack it. Well! To clear the air, every year many students crack the GATE exam and get recruited in top Indian PSUs or pursue their M. Tech studies. Although the success rate is quite low, still GATE is not impossible at all. With sheer hard work, determination, and sincere efforts you can easily crack the GATE exam.
Do PSU Employees Go Abroad?
Yes! At times, employees can go abroad for higher studies, training purposes, or processes requirements. The company will bear all expenses from travel, stay and examination, and course fees on behalf of the employees.
Is PSU Public Or Private?
Government-owned enterprises are termed as 'Public Sector Undertakings (PSU)'. These PSUs can be owned by Central Government or State Governments. Private Companies are also registered under the same Act. There are Limited companies and Private Limited companies.
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