Do you know what is the PSU Full Form? The full form of PSU stands for “Public Sector Undertakings“. Public Sector Undertakings are important components of the Indian economy, which are owned, managed, and operated by the Government of India. These entities were established to promote economic growth, provide employment opportunities, and ensure that essential services are accessible to all sections of society. The PSUs play a vital role in the Indian economy, particularly in the areas of infrastructure development, public utilities, and strategic industries.
What is the PSU Full Form?
PSU Full Form – Public Sector Undertakings
What is PSU?
Public Sector Undertakings are government-owned companies or corporations that provide essential goods and services to the public. They are a vital part of the Indian economy and play a significant role in job creation, infrastructure development, and revenue generation.
History of PSU in India
After gaining independence, India had a weak industrial base and relied heavily on agriculture. Private sector industrialists owned most of the large economic entities, including railways, banks, coal mines, and electricity utilities. In 1948, the first industrial policy resolution was announced, and the Industrial (Development and Regulation) Act was enacted in 1951 to bring power to the government to regulate the industry.
Jawaharlal Nehru’s Industrialisation Policy
Jawaharlal Nehru, India’s first prime minister, promoted an economic policy based on the industrialization of import substitution. He believed that establishing basic and heavy industries was crucial for India’s economic development. The second five-year plan and the industrial policy resolution of 1956 emphasized the development of Indian public sector enterprises to meet Nehru’s industrialization policy.
Types of Public Sector Undertakings
Departmental Undertakings
These are services or goods departments that function under a ministry or department of the government. They are not legally separate entities and are entirely controlled and funded by the government.
Statutory Corporations
These are independent entities established by an Act of Parliament or State Legislature. They are governed by a board of directors and are legally accountable to the government. Examples include the Airports Authority of India and the Food Corporation of India.
Government Companies
Government companies are registered under the Companies Act and are managed by a board of directors. They are wholly or majority-owned by the government and are subject to the same laws as private companies. Examples include Steel Authority of India Limited (SAIL) and Bharat Petroleum Corporation Limited (BPCL).
Classification of PSU in India
PSUs in India are classified into three groups: State Level Public Enterprises (SLPEs), Central Public Sector Enterprises (CPSEs), and Public Sector Banks (PSBs).
Famous PSUs in India
Coal India Limited (CIL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Heavy Electricals Limited (BHEL), Food Corporation of India (FCI), State Bank of India (SBI), Steel Authority of India Limited (SAIL), Gas Authority of India Limited (GAIL), National Thermal Power Corporation (NTPC), Power Grid Corporation of India (PGCI), and Mahanagar Telephone (MTNL) are some of the well-known PSUs in India.
FAQs – What Is The PSU Full Form?
Q.1. What is the PSU Full Form?
Ans. PSU stands for Public Sector Undertaking.
Q.2. What is a Public Sector Undertaking (PSU)?
Ans. Public Sector Undertaking (PSU) is a term used to refer to government-owned corporations in India. These corporations are created by the government to undertake commercial activities that are considered important for the country’s economic growth and development.
Q.3. What are some examples of PSUs in India?
Ans. Some of the well-known PSUs in India include Air India, Bharat Heavy Electricals Limited (BHEL), Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Coal India Limited (CIL), and National Thermal Power Corporation Limited (NTPC).
Q.4. What are the benefits of working in a PSU?
Ans. Some of the benefits of working in a PSU include job security, a good salary, additional perks and benefits, opportunities for career growth, and a chance to serve the nation.
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