Public sector undertakings in India

A government entity which are either government-owned enterprise or government-owned corporation or statutory corporation or government-owned-company or nationalised company in India is called a Public Sector Undertaking (PSU) or a Public Sector Enterprise (PSE) or a Public Sector Unit (PSU). These establishments are wholly or partly owned by the Government of India and/or one of the many state or territorial governments. Central Public Sector Undertakings (CPSU, CPSE) are wholly or partly owned by the Government of India, while State Level Public Sector Undertakings (SLPSU, SLPSE) are wholly or partly owned by state or territorial governments.

In 1951, there were just 5 PSEs under the ownership of government sector in India. By March 2021, the number of such government entities had increased to 365, including 7 new Defense PSUs.[1] These government entities represented a total investment of about ₹16.41 lakh crore as of 31 March 2019. Their total paid-up capital as of 31 March 2019 stood at about ₹2.76 lakh crore. CPSEs have earned a revenue of about ₹25.43 lakh crore during the financial year 2018–19.[1]

History
Further information: Economic history of India

When India achieved independence in 1947, it was primarily an agrarian entity, with a weak industrial base. There were only eighteen state owned Indian Ordnance Factories, previously established to reduce the dependency of the British Indian Army on imported arms.[2]

The British Raj had previously elected to leave agricultural production to the Private sector, with tea processing firms, Jute mills (such as the Acland Mill), railways, electricity utilities, banks, coal mines, and steel mills being just some of the economic entities largely owned by private individuals like the industrialist Jamsetji Tata. Other entities were listed on the Bombay Stock Exchange.[3]

Critics of private ownership of India’s agricultural and industrial entities—most notably Mahatma Gandhi’s independence movement—instead advocated for a self-sufficient, largely agrarian, communal village-based existence for India in the first half of the 20th century.[4][5] Other contemporary criticisms of India’s public sector targeted the lack of well-funded schools, public libraries, universities, hospitals and medical and engineering colleges; a lack seen as impeding an Indian replication of Britain’s own industrialization in the previous century.[6][7][8][9][10]

Post-Independence, the national consensus turned in favor of a rapid industrialisation of the economy, a process seen as the key to economic development, improved living standards and economic sovereignty.[11] Building upon the Bombay Plan, which noted the necessity of government intervention and regulation in the economy, the first Industrial Policy Resolution announced in 1948 laid down in broad strokes such a strategy of industrial development. Later, the Planning Commission was formed by a cabinet resolution 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 industry.[12]

The first Prime Minister of India, Jawaharlal Nehru, promoted an economic policy based on import substitution industrialisation and advocated a mixed economy.[13] He believed that the establishment of basic and heavy industry was fundamental to the development and modernisation of the Indian economy. India's second five year plan (1956–60) and the Industrial Policy Resolution of 1956 emphasized the development of public sector enterprises to meet Nehru's national industrialisation policy. His vision was carried forward by Dr. V. Krishnamurthy, a figure known as the "Father of Public sector undertakings in India". Indian statistician Prasanta Chandra Mahalanobis was instrumental to its formulation, which was later termed the Feldman–Mahalanobis model.[14][15]

In 1969, Indira Gandhi's government nationalised fourteen of India's largest private banks, and an additional six in 1980. This government-led industrial policy, with corresponding restrictions on private enterprise, was the dominant pattern of Indian economic development until the 1991 Indian economic crisis.[12] After the crisis, the government began divesting its ownership of several PSUs to raise capital and privatize companies facing poor financial performance and low efficiency.[16][17]

Management

All of the public sector undertakings have been awarded additional financial autonomy. These units are government establishments that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants".[18] Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997.[19] Originally, the term Navaratna meant a talisman composed of nine precious gems. Later, this term was adopted in the courts of Gupta emperor Vikramaditya and Mughal emperor Akbar, as the collective name for nine extraordinary courtiers at their respective courts.

In 2010, the central government established the higher Maharatna category, which raises a public sector unit's investment ceiling from ₹1,000 crore to ₹5,000 crore.[20] The Maharatna public sector units can now decide on investments of up to 15 per cent of their net worth in a project while the Navaratna companies could invest up to ₹1,000 crore without explicit government approval. Two categories of Miniratnas afford less extensive financial autonomy.

Guidelines for awarding Ratna[21] status are as follows:

Category Eligibility Benefits for investment
Maharatna Three years with an average annual net profit of over ₹2,500 crore, OR

Average annual Net worth of ₹10,000 crore for 3 years, OR

Average annual Turnover of ₹20,000 crore for 3 years (against Rs 25,000 crore prescribed earlier)[22]

 ₹1,000 crore – ₹5,000 crore, or free to decide on investments up to 15% of their net worth in a project
Navaratna A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., AND

A psu must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

up to ₹1,000 crore or 15% of their net worth on a single project or 30% of their net worth in the whole year (not exceeding ₹1,000 crores).
Miniratna Category-I Have made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years up to ₹500 crore or equal to their net worth, whichever is lower.
Miniratna Category-II Have made profits continuously for the last three years and should have a positive net worth. up to ₹300 crore or up to 50% of their net worth, whichever is lower.

PSUs in India are also categorised based on their special non-financial objectives and are registered under Section 8 of Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).

Top profit making Central PSUs
Top 10 Profit Making CPSEs in Financial Year 2019–20[23]
S. No. CPSE Name Net Profit (₹ crore) Share (%)
1 Oil and Natural Gas Corporation Limited (ONGC) 13,445 9.7
2 Coal India Limited (CIL) 11,281 8.2
3 Power Grid Corporation of India (PGCIL) 10,811 7.8
4 National Thermal Power Corporation (NTPC) 10,113 7.3
5 Gas Authority of India Limited (GAIL) 6,621 4.8
6 Mahanadi Coalfields (MCL) 6,427 4.7
7 Power Finance Corporation Limited (PFCL) 5,655 4.1
8 Northern Coalfields (NCL) 4,971 3.6
9 Rural Electrification Corporation (REC) 4,886 3.5
10 Nuclear Power Corporation of India Ltd (NPCIL) 4,459 3.2
Other CPSEs 59,443 43
Aggregated profit of profit-making CPSEs 1,38,112 100

Top loss making Central PSUs
Top Loss Making CPSEs in Financial Year 2019–20[23]
S. No. CPSE Name Net Loss (₹ crore) Share (%)
1 Bharat Sanchar Nigam Limited (BSNL) 15,500 34.6
2 Rashtriya Ispat Nigam Limited (RINL) 3,910 8.7
3 Mahanagar Telephone Nigam Limited (MTNL) 3,696 8.2
4 Mangalore Refinery and Petrochemicals Limited (MRPL) 2,708 6.0
5 Chennai Petroleum Corporation Ltd. (CPCL) 2,078 4.6
6 Bharat Heavy Electricals Limited (BHEL) 1,473 3.3
7 ONGC Mangalore Petrochemicals Limited (OMPL) 1,400 3.1
8 Bharat Petro Resources Ltd (BPRL) 915 2.0
9 Hindustan Copper Ltd (HCL) 569 1.3
Other CPSEs 4,094 9.1
Aggregate loss of loss-making CPSEs 44,817 100

List of Central PSUs
Main article: List of public sector undertakings in India

Public Sector Units (PSUs) can be classified as Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), or State Level Public Enterprises (SLPEs). CPSEs are administered by the Ministry of Heavy Industries and Public Enterprises. The Department of Public Enterprises (DPE), Ministry of Finance is the nodal department for all the Central Public Sector Enterprises (CPSEs).

As of October 2021, there are 11 Maharatnas, 13 Navratnas and 73 Miniratnas (divided into Category 1 and Category 2).[24][25]

List of Maharatna CPSUs

List of Navratna CPSUs

List of Miniratna CPSUs

Miniratna Category-I (61)

Miniratna Category-II (12)

List of other CPSEs
  • Agrinnovate India Ltd.
  • AFC India Limited
  • Anushakti Vidhyut Nigam Limited
  • Bengal Chemicals and Pharmaceuticals Limited
  • Bengal Immunity Limited
  • Bird Group of Companies
  • Bharat Broadband Network
  • Bharat Gold Mines Limited
  • Bharat Wagon and Engineering
  • Bharat Immunologicals and Biologicals Corporation
  • Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL)
  • Brahmaputra Cracker and Polymer Limited
  • BrahMos Aerospace
  • BHAVINI
  • Biotech Consortium India Limited
  • BHEL Electrical Machines Ltd. (EML)
  • BEML Midwest ltd.
  • Convergence Energy Services Limited
  • Cement Corporation of India
  • Central Inland Water Transport Corporation Limited
  • Certification Engineers International Limited
  • City and Industrial Development Corporation
  • Chenab Valley Power Projects
  • Damodar Valley Corporation
  • Delhi Metro Rail Corporation
  • Electronics Corporation of India Limited
  • Employees State Insurance Corporation
  • Energy Efficiency Services Limited
  • Export Credit Guarantee Corporation of India
  • Fresh & Healthy Enterprises Limited
  • Fertilizer Corporation of India
  • Fertilisers and Chemicals Travancore Limited
  • Food Corporation of India
  • Green Gas Limited
  • Hemisphere Properties India Limited
  • Haldia Petrochemicals Limited
  • Hindustan Antibiotics Limited
  • Hindustan Insecticides Limited
  • Hindustan Organic Chemicals Limited
  • Hindustan Fertilizerls Corporation Limited
  • Hindustan Prefab Limited
  • Hindustan Salts Limited
  • Hindustan Steelworks Construction Company Ltd.
  • Hindustan Urvarak & Rasayan Limited
  • Hindustan Vegetable Oils Corporation
  • HTL Ltd.
  • HSCC
  • Hotel Corporation of India Limited
  • Karnataka Soaps and Detergents Limited
  • Khadi Natural
  • Khanij Bidesh India Ltd.
  • Life Spring Hospitals (P) Ltd.
  • Konkan Railway Corporation
  • Konkan LNG
  • Krishnapatnam Railway Company Limited
  • Karnataka Vijayanagar Steel Limited, NMDC Steel
  • Madras Fertilizers
  • Millennium Telecom Ltd.
  • Meja Urja Nigam Pvt Ltd. (MUNPL)
  • National Highways Logistics Management Company
  • National Projects Construction Corporation Ltd (NPCC)
  • National Land Monetisation Corporation (NLMC)
  • National Informatics Centre Services Inc.
  • National Industrial Corridor Development Corporation Limited
  • Narmada Hydroelectric Development Corporation
  • National High Power Test Laboratory(NHTPL)
  • Neelachal Ispat Nigam Limited
  • Bharat Refractories Limited, Bokaro
  • NewSpace India Limited
  • NEPA Mills Ltd.
  • NSPCL
  • IDFC Ltd.
  • India Debt Resolution Company Limited (IDRCL)
  • IHB limited
  • Indian Highway Management Company Limited(IHMCL)
  • Indian Vaccine Corporation Limited
  • Indian Medicine Pharmaceutical Corporation Ltd.
  • India Infrastructure Finance Company Limited
  • Indraprastha Gas
  • Indradhanush Gas Grid Limited (IGGL)
  • Infrastructure Leasing & Financial Services
  • India SME Asset Reconstruction Company Limited
  • Indian Potash Limited
  • Indian Strategic Petroleum Reserves Ltd
  • Instrumentation Ltd.
  • Intelligent Communication Systems India Limited
  • Irrigation and Water Resources Finance Corporation Limited
  • Petronet LNG
  • Pipavav Railway Corporation Ltd. (PRCL)
  • Power System Operation Corporation
  • Prize Petroleum Company Limited
  • PTC India
  • Punjab Logistics Infrastructure Limited
  • Railway Energy Management Company
  • Ropeways and Rapid Transport System Development Corporation
  • Sagarmala Development Company
  • SIDCUL CONCOR Infra Co. Limited
  • Semiconductor Complex Limited
  • Smith Stanisteet Pharmaceuticals Ltd
  • sethusamudram corporation limited
  • Sponge Iron India Ltd (SIIL)
  • STCI Finance Limited
  • State Farms Corporation of India
  • Tourism Finance Corporation Of India Ltd.
  • Talcher Fertilizers Limited.
  • Triveni Structurals Ltd
  • UTI Infrastructure Technology And Services Limited
  • Utkarsha Aluminium Dhatu Nigam Limited
  • UV Asset Reconstruction Company Limited

List of Central PSUs (Financial Services)
Main article: Public sector banks in India

Nationalized banks

Currently there are 12 Nationalised Banks in India (Government Shareholding power is denoted in %, as of 1 April 2020):

Regional rural banks

Currently there are 43 Regional Rural Banks in India, as of 1 April 2020:[26]

Andhra Pradesh

Arunachal Pradesh

  • Arunachal Pradesh Rural Bank

Assam

Bihar

Chhattisgarh

  • Chhattisgarh Rajya Gramin Bank

Gujarat

  • Baroda Gujarat Gramin Bank
  • Saurashtra Gramin Bank

Haryana

  • Sarva Haryana Gramin Bank

Himachal Pradesh

  • Himachal Pradesh Gramin Bank

Jammu and Kashmir

  • J&K Grameen Bank
  • Ellaquai Dehati Bank

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Manipur

  • Manipur Rural Bank

Meghalaya

  • Meghalaya Rural Bank

Mizoram

Nagaland

  • Nagaland Rural Bank

Odisha

Puducherry

Punjab

  • Punjab Gramin Bank

Rajasthan

  • Baroda Rajasthan Kshetriya Gramin Bank
  • Rajasthan Marudhara Gramin Bank

Tamil Nadu

  • Tamil Nadu Grama Bank

Telangana

  • Telangana Grameena Bank

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

Nationalized insurance companies

Currently there are 7 Nationalized Insurance Companies (Government Shareholding power denoted in %, as of 1 April 2020):

Nationalized Market exchanges

Currently there are 28 Nationalized Financial Market Exchanges in India (Government Shareholding power denoted in %, as of 1 April 2020):

See also

References
  1. "Public Enterprises Survey 2019–20 | Department of Public Enterprises | MoHI&PE | GoI Page No. 1" (PDF). dpe.gov.in. Retrieved 31 May 2020.
  2. "Home | Ordnance Factory Board | Government of India".
  3. "[IRFCA] Indian Railways FAQ: IR History: Early Days - 1". www.irfca.org. Retrieved 15 May 2021.
  4. "Mahatma Gandhi believed in a self-sufficient village economy". www.newsonair.com. Retrieved 15 May 2021.
  5. Gosalia, Sushila (1 March 1979). "The Gandhian model of self-reliance in the Indian economy". Intereconomics. 14 (2): 80–83. doi:10.1007/BF02930202. hdl:10419/139599. ISSN 1613-964X. S2CID 56358907.
  6. Mushtaq, Muhammad Umair (January 2009). "Public Health in British India: A Brief Account of the History of Medical Services and Disease Prevention in Colonial India". Indian Journal of Community Medicine. 34 (1): 6–14. doi:10.4103/0970-0218.45369. ISSN 0970-0218. PMC 2763662. PMID 19876448.
  7. Amrith, Sunil S. (February 2009). "Health in India Since Independence" (PDF).{{cite web}}: CS1 maint: url-status (link)
  8. Chaudhary, Latika (March 2009). "Determinants of Primary Schooling in British India". The Journal of Economic History. 69 (1): 269–302. doi:10.1017/S0022050709000400. ISSN 0022-0507.
  9. Chaudhary, Latika (1 May 2012). "Caste, Colonialism and Schooling: Education in British India". Rochester, NY. SSRN 2087140. {{cite journal}}: Cite journal requires |journal= (help)
  10. Odgers, George Allen (1925). "Education in British". JSTOR 20257440. {{cite journal}}: Cite journal requires |journal= (help)
  11. "Chapter 1, Industrial Policy Handbook" (PDF). Industrial Policy Handbook. Office of the Economic Adviser, Ministry of Commerce and Industry. p. 2. Archived from the original (PDF) on 28 May 2015. Retrieved 17 September 2015.
  12. Jadhav, Narendra. "Industrial Policy since 1956" (PDF). Dr. Narendra Jadhav. Retrieved 17 September 2015.
  13. Ghose, Shankar (1993). Jawaharlal Nehru. Allied Publishers. p. 243. ISBN 978-8170233695.
  14. Ahluwalia, Isher J. (1993). Productivity and Growth in Indian Manufacturing, part of Recent Developments in Indian Economy: With Special Reference to Structural Reforms, Part 2. New Delhi: Academic Foundation. p. 25. ISBN 9788171880942.
  15. Baldev Raj Nayar, Globalization And Nationalism: The Changing Balance Of India's Economic Policy, 1950–2000 (New Delhi: Sage, 2001)
  16. "Disinvestments-A Historical Perspective". Bombay Stock Exchange. Retrieved 19 September 2015.
  17. Sankar, T.L., Mishra, R.K., Lateef Syed Mohammed, A. (1994). "Divestments in Public Enterprises: The Indian Experience". International Journal of Public Sector Management. 7 (2): 69–88. doi:10.1108/09513559410055242.{{cite journal}}: CS1 maint: multiple names: authors list (link)
  18. Original govt. announcement about the Navratnas 1997 Archived 9 February 2012 at the Wayback Machine
  19. "Maharatnas, Navratnas: India's best PSUs!". Rediff.
  20. "Maharatna status for mega PSUs gets nod". The Times of India. 25 December 2009. Retrieved 29 December 2009.
  21. "bsepsu.com". www.bsepsu.com. Retrieved 25 July 2016.
  22. http://www.archive.india.gov.in/spotlight/spotlight_archive.php?id=78
  23. "Public Enterprises Survey 2019–20 Volume 1" (PDF). Department of Public Enterprises | Ministry of Finance.
  24. "List of Maharatna and Navratna companies in India". Dainik Jagran. 8 April 2021.
  25. "List of Maharatna, Navratna and Miniratna CPSEs". Ministry of Finance. Retrieved 24 September 2021.
  26. "list of SCB".
  27. Kumar, N. Ravi (10 May 2019). "Rural banks to be merged in TS, AP". The Hindu.
  28. "दैनिक जागरण: बैंकों का विलय : एक हुए UP के तीन बैंक, अब बड़ौदा यूपी बैंक नाम से जाने जाएंगे".
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