“It’s time to start living the life we have imagined”- quote by Henry James perfectly sums up our dreams and desires. Jobs in Public Sector Undertakings gives us a platform where one can live all the dreams which we all have dreamed in our college life i.e. a good job without crazy hours, with great salary and reputation in society.
But, what are PSUs, how one gets PSUs jobs through GATE, or what is PSU exam are questions which confuses us all. In this article we will address such questions and more.
What is PSU?
PSUs (Public Sector Undertakings) are the government owned corporations in India, in which 51% or more than 51% of the paid up share capital is owned by government of India. Now, it can be only central government or only state government of any state or central government with any state government or state governments.
How PSU came into existence?
After independence, India was dealing with serious socio- economic issues caused by long period of slavery and exploitation like income gap, regional economic development imbalance, wide spread unemployment, insufficient weak industrial base with inadequate investments and lack of infrastructure facilities and lack trained human resources or technological backwardness etc.
So, Public sector was seen as an instrument of development for self reliant and steady economic growth. The Nation followed a planned economic development policy in which PSUs had a big role to play.
Over the years, with some landmark new policies, public sector has continued to play a major role in the country’s economic growth and a career attraction to youth, who wish to be part of a PSU. Major job requirement in PSUs is of engineering students and science students, due to its technical, scientific and manufacturing needs (but that does not mean PSUs are only limited to science students). PSUs recruits a large number of candidates every year through GATE exam and this number is increasing as more and more PSUs are joining this league. This way PSUs hold a central platform of importance in the Indian economy through manufacturing and providing advancement in the field of science as well as being career magnet for youth for jobs.
Classification of Public Sector Undertakings
Public Sector undertakings (PSU) can be classified into three following categories:
- Central public-sector Enterprises (CPSEs) – Companies which are under the direct control of the Central government or of other CPSEs by 51% or more than 51% of capital share ownership.
The Central Public-Sector Enterprises (CPSEs) are further classified into Strategic CPSE and Non-strategic CPSE.
Strategic Central Public-sector Enterprises (CPSEs) which includes the Arms & Ammunition and the defense equipment’s, defense aircraft and other items related Defense, and in the field of atomic energy and Railways transport.
The rest of the CPSEs are regarded as Non-strategic CPSE.
- Public Sector banks (PSBs) – Banks which 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 which are under the direct control of the State Government or other SLPEs by 51% or more than 51% of capital share ownership.
What is concept of MAHARATNA, NAVRATNA and MINIRATNA COMPANIES and what does it mean to be one of these companies
The status of Maharatna, Navratna, or Miniratna to CPSEe is given by the Department of Public Enterprises to Public Sector Enterprises according to their financial performance and growth.
These statuses provide them more autonomy over financial and administrative matters to some extent and enable them to compete with other market players domestically as well as internationally and also awards a prestigious title. These statuses also represent the consistent growth of a company. Here is a brief description about Navratna companies, Maharatna companies, and Miniratna companies.
The Maharatna is the highest status a company can get under this system. To qualify for the Maharatna status, the company has certain parameters to fulfill and only after that it can be awarded as Maharatna company.
Firstly, it should be a Navratna company, so this is a kind of promotion from a Navratna company to Maharatna company.
Secondly, for qualifying as Maharatna status, a company should have an average annual turnover of Rs 20,000 crore during the last three years. The average annual net worth should be Rs 10,000 crore.
Lastly, the Maharatna status enables a company to be more in control of their financial and administrative matters, so that, 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 Rs 5,000 crores as against the previous limit of 1,000 crores, without seeking the approval of the government. The Maharatna companies are free to decide on investment matters up to 15% of their net worth in a project.
As on August 2018, there are eight Companies who have the title of Maharatna company as listed below:
- Bharat Heavy Electricals limited (headquarter in Delhi)
- Bharat Petroleum Corporation Limited (headquarter in Mumbai)
- Coal India Limited (headquarter in Kolkata)
- GAIL (India) Limited (headquarter in Delhi)
- Indian oil corporation Limited (headquarter in Mumbai)
- NTPC Limited (headquarter in New Delhi)
- Oil & Natural Gas Corporation Limited (headquarter in New Delhi)
- Steel Authority of India Limited (headquarter in New Delhi)
The company qualified for the Navratna status (which is the second highest status of a PSU) has to fulfill the following criteria:
Firstly, it should be a Miniratna category-1 company and having Schedule ‘A’ status.
Secondly, having the record of at least three ‘Excellent’ or ‘very good’ Memorandum of Understanding (MoU) rating during the last five years.
Being a Navratna company empowers PSEs to invest up to 15% of their net worth or Rs 1,000 crore on a single project without asking for approvement of the government. In a year, a Navratna company can spend up to 30% of their net worth not exceeding Rs 1,000 cr. A Navratna company has autonomy to enter into joint ventures, form alliances and float subsidiaries abroad.
As on August, there are 16 Navratna CPSEs.
Miniratna category of CPSEs is further divided into two categories namely:
Miniratna category – I
To achieve the status of Miniratna Category-I status, the CPSE should have made 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.
Subject to certain conditions, Miniratnas can enter into joint ventures or set subsidiary companies or overseas offices.
The PSEs belonging to this category have autonomy for incurring the capital expenditure of up to Rs 300 crore or up to 50% of their net worth, whichever is lower, without asking for the approval of government,
CAREER OPPORTUNITIES IN PSU: PSU JOBS THROUGH GATE
A career in PSUs (public sector undertakings) holds an attraction to youth because of the prestige and various perks of these jobs like good salary increments. Not let us look at how these PSUs recruit employees.
Different PSUs have different eligibility criteria for recruitment like Educational qualification, Age limit and so on. Most PSUs prefer candidates who have GATE qualifying marks. The applicant should be a graduate. Exact qualifications and age criteria varies for different posts.
There are different modes by which one can get a job in PSU which are as follows:
- By securing a job through GATE exam.
- Through NET Exams, either UGC NET or CSIR NET
- Direct Selection Process
PSUs jobs through GATE:
This is the most important exam or so to say necessary element if you wish to get a job in PSU. Nowadays a majority of PSU prefer to select their candidates on the basis of their performance in the GATE exam and if they qualify the set criteria by respective PSU, they will surely get the interview call which will be followed by Group Discussion and Personal Interview. Candidates interested in a PSU can apply online on the respective PSU website. More and more PSUs are adding to the number of selection mode by GATE score, also the reason for the rising popularity of GATE Exam.
PSUs jobs through NET exam:
Candidates who have qualified NET exam, either UGC NET or CSIR NET, they can use their NET score to take part in recruitment process of such PSU.
Direct Selection Process:
Some PSUs have their own competitive exam for recruitment in their respective PSU. So, one can also prepare for the competitive exam of respective PSU they wish to apply for job. However, this mode of selection is getting less day by day, as by every year more PSUs add to number who have made GATE exam as their qualification criteria for application for job.
WHY PSU AS A CAREER AND HOW GATE CONTRIBUTES TO IT
There are numbers of reason for popularity of job at PSU which can be seen as below:
- Salary– The PSUs offer an attractive package of salaries from 7 lakhs to 20 lakhs per annum which is really good considering the young age of aspirants as general age limit set by PSUs is often as low as 25 years.
- Easy promotions– You will get time bound promotions and various increments. Especially after the 7th pay commission it has increased to attritive limit.
- Security of job– Since this a government job, one does not have worry about every day if I will have a job tomorrow or not.
- Allowances– You will get allowances for expenses like phone, laptops, furniture etc
- Free medical insurance– You get free and full medical insurance for yourself and your family.
- Accommodation– Many PSUs offer accommodation as well so you don’t have to worry about that as well.
- Paid leaves for studies – You also get paid leave for leaves for higher studies in case you want to study further.
- Soft loan terms– you can also get loans only on 3-4% for a house or a car.
Now comes the question – how GATE exam contributes to it? GATE is a pathway that leads to PSUs.
Nationality – Indian nationals as well as nationals of Nepal, Bangladesh, Sri Lanka, Ethiopia and UAE will be eligible to appear.
Academic qualifications: –
- Bachelor’s degree holder in technology/ engineering/ architecture (10+2+4) / post B.Sc./ post diploma / and final year students.
- Masters 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 professionals societies recognized by UGC / AICTE
- Those who have completed section A or equivalent professional courses are also eligible.
GATE exam is conducted in 24 disciplines: –
- Aerospace engineering (AE)
- Agricultural Engineering (AG)
- Architecture and Planning (AR)
- Biotechnical (BT)
- Civil Engineering (CE)
- Chemical Engineering (CH)
- Computer Science and Information Technology (CS)
- Chemistry (CY)
- Electronics and Communication Engineering (EC)
- Electrical Engineering (EE)
- Ecology and Evolution (EV)
- Geology and Geophysics (GG)
- Instrumentation Engineering (IN)
- Mathematics (MA)
- Mechanical Engineering (ME)
- Mining Engineering (MN)
- Metallurgical Engineering (MT)
- Petroleum Engineering (PE)
- Physics (PH)
- Production and Industrial Engineering (PI)
- Textile Engineering and Fiber Science (TF)
- English Sciences (XE)
- Life Sciences (XL)
- Statistics (ST)
Age limit – No age for appearing in the GATE exam.
So, this is all about PSUs and PSUs jobs through GATE for now.