All ABOUT PSUs: PUBLIC SECTOR ENTERPRISES IN INDIA

PSUs (Public Sector Undertakings)

“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 give 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 a great salary and reputation in society.

But, what are PSUs, how one gets PSUs jobs through GATE, or what is the PSU exam are questions which confuse us all? In this article, we will address such questions and more.

What is PSU?

PSUs (Public Sector Undertakings) are government-owned corporations in India, in which 51% or more than 51% of the paid-up share capital is owned by the government of India. However, it can be only the central government or only the 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 and financial issues caused by a long period of slavery and exploitation like income gap, imbalance in regional economic development, and widespread unemployment. Moreover, an insufficient weak industrial base with inadequate investments and lack of infrastructure facilities along with a lack of trained human resources or technological backwardness was crippling the basic framework of India.

At this point of time, Public Sector was seen as an instrument of development for self-reliant and steady economic growth. Hence, 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, the public sector has continued to play a major role in the country’s economic growth and has become an attractive career destination for the youth. Major job requirement in PSUs is engineering students and science students, due to their technical, scientific, and manufacturing needs (but that does not mean PSUs are only limited to science students). Apparently, PSUs recruit a large number of candidates every year through GATE Exam and this number is increasing as more and more PSUs are joining this league. Therefore, 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 magnets for youth for jobs.

Classification of Public Sector Undertakings

Public Sector undertakings (PSU) can be classified into three following categories:

1. Central public-sector Enterprises (CPSEs) – 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.

 The Central Public-Sector Enterprises (CPSEs) are further classified into Strategic CPSEs and Non-strategic CPSEs.

Strategic Central Public-sector Enterprises (CPSEs) include Arms & Ammunition and the defense equipment, defense aircraft, and other items related to Defense, and in the field of atomic energy and Railways transport.

The rest of the CPSEs are regarded as Non-strategic CPSEs.

2. 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.
3. 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 the concept of MAHARATNA, NAVRATNA and MINI RATNA 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.

Moreover, 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 award a prestigious title. These statuses also represent the consistent growth of a company. Here is a brief description of Navratna companies, Maharatna companies, and Miniratna companies.

Maharatna companies

The Maharatna is the highest status a company can get under this system. Hence, to qualify for the Maharatna status, the company has certain parameters to fulfill, and only after that, it can be awarded as a Maharatna company.

Firstly, it should be a Navratna company, so this is a kind of promotion from a Navratna company to a 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 that have the title of Maharatna company as listed below:

1. Bharat Heavy Electricals limited (headquarter in Delhi)
2. Bharat Petroleum Corporation Limited (headquarter in Mumbai)
3. Coal India Limited (headquarter in Kolkata)
4. GAIL (India) Limited (headquarter in Delhi)
5. Indian oil corporation Limited (headquarter in Mumbai)
6. NTPC Limited (headquarter in New Delhi)
7. Oil & Natural Gas Corporation Limited (headquarter in New Delhi)
8. Steel Authority of India Limited (headquarter in New Delhi)

Navratna Companies

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 have Schedule ‘A’ status.

Secondly, having a record of at least three ‘Excellent’ or ‘very good’ Memorandum of Understanding (MoU) ratings during the last five years.

Being a Navratna company empowers PSEs to invest up to 15% of their net worth of Rs 1,000 crore on a single project without asking for approval from the government. In a year, a Navratna company can spend up to 30% of its net worth not exceeding Rs 1,000 cr. A Navratna company has the autonomy to enter into joint ventures, form alliances, and float subsidiaries abroad.

As of August, there are 16 Navratna CPSEs.

Miniratna Companies

This 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 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.

Subject to certain conditions, Miniratnas can enter into joint ventures or set up subsidiary companies or overseas offices.

Miniratna category-II

The PSEs belonging to this category have autonomy for incurring a 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 the government.

How many industries are reserved for public sector companies?

The industries that are reserved in the public sector companies include atomic energy, minerals enlisted under the schedule of atomic energy, and railway operations. PSU companies in India serve their best in these industries in the best possible manner.

What is the importance of public sector companies?

There is a lot of popularity in the professional segment associated with the PSU in India. Public sector companies prove to be beneficial for society in the following aspects:

• Economic development: Public sector influences industrial development to a great extent. Public sector companies can arrange the capital required for this development with much ease when compared to private sector companies. This capital is useful for heavy products industries such as iron, steel, and mining, to name a few.
• Employment: Every public sector company requires significant manpower for the successful completion of industrial activities. This leads to a steady requirement for skilled and experienced manpower which influences the increased creation of jobs.
• Monopoly: Public sector companies do not have competition from the private sector companies. This is because the public sector is a complete government monopoly. Government bodies in India have offered public sector companies several recognitions in their respective field.
• Excellent infrastructure: Indian public sector companies understand that infrastructural industries associated with roads, railways, and electricity require a significant amount of capital for the successful completion of the respective projects without having sufficient profits. Therefore, a public sector company can afford to invest its funds in these projects without focusing on achieving profits from these projects.
• Serving society: The prime motive of the PSU companies in India is to serve society to the best possible extent without thinking about profits. A public sector company is known to contribute to social welfare in the best possible manner.

Career Opportunities in PSU: PSU Jobs through GATE Exam

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. However, most PSUs prefer candidates who have GATE qualifying marks. The applicant should be a graduate. The exact qualifications and age criteria vary 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 their respective PSU, they will surely get the interview call which will be followed by Group Discussion and a 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 modes by GATE score, also the reason for the rising popularity of the GATE Exam.

PSUs jobs through NET exam:

Candidates who have qualified the NET exam, either UGC NET or CSIR NET, they can use their NET score to take part in the recruitment process of such PSU.

Direct Selection Process:

Some PSUs have their own competitive exam for recruitment in their respective PSUs. So, one can also prepare for the competitive exam of the respective PSU they wish to apply for a job. However, this mode of selection is getting less day by day, as by every year more PSUs add to the number who have made the GATE exam as their qualification criteria for application for jobs.

Why PSU as a career and how GATE contributes to it

There is a number of reasons for the popularity of jobs at PSU which can be seen below:

1. 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 the general age limit set by PSUs is often as low as 25 years.
2. Easy promotions– You will get time-bound promotions and various increments. Especially after the 7^th pay commission, it has increased to the attritive limit.
3. Security of job– Since this is a government job, one does not have to worry about every day if one will have a job tomorrow or not.
4. Allowances– You will get allowances for expenses like phones, laptops, furniture, etc
5. Free medical insurance– You get free and full medical insurance for yourself and your family.
6. Accommodation– Many PSUs offer accommodation as well so you don’t have to worry about that as well.
7. Paid leaves for studies – You also get paid leave for leaves for higher studies in case you want to study further.
8. Soft loan terms– you can also get loans of only 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.

Eligibility: –

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 final 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 29 disciplines: –

1. Aerospace engineering (AE)
2. Agricultural Engineering (AG)
3. Architecture and Planning (AR)
4. Biotechnology (BT)
5. Civil Engineering (CE)
6. Chemical Engineering (CH)
7. Computer Science and Information Technology (CS)
8. Chemistry (CY)
9. Electronics and Communication Engineering (EC)
10. Electrical Engineering (EE)
11. Ecology and Evolution (EY)
12. Geology and Geophysics (GG)
13. Instrumentation Engineering (IN)
14. Mathematics (MA)
15. Mechanical Engineering (ME)
16. Mining Engineering (MN)
17. Metallurgical Engineering (MT)
18. Petroleum Engineering (PE)
19. Physics (PH)
20. Production and Industrial Engineering (PI)
21. Textile Engineering and Fiber Science (TF)
22. Engineering Sciences (XE)
23. Life Sciences (XL)
24. Statistics (ST)
25. Biomedical Engineering (BM)
26. Environmental Science & Engineering (ES)
27. Geomatics Engineering (GE)
28. Naval Architecture and Marine Engineering (NM)
29. Humanities and Social Sciences (XH)

Age limit – No age for appearing in the GATE exam.

So, this is all about PSUs and PSUs jobs through GATE for now.

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