What is PSU (Public Sector Undertaking)?
PSUs or PSEs are a corporation or an enterprise that is owned by the central government or state government and the Government have the majority shares of the company means 51% or more share of the company are owned by the central government or state government and the remaining shares are owned by any private company which is Indian or international it doesn’t matter. The Employees who work on these respective entities their subsidiaries are owned by government or state level PSUs.
In India, PSUs are divided into 3 types which are given below
- Maharatna
- Navratna
- Miniratna Category-I
- Miniratna Category-II
Types of PSUs in India
The first Nine public sector undertakings (PSUs) are announced in 1997 and all 9 PSUs are added into the category and its name is “Navratna”, but now in 2021, we have a total of 14 PSUs in the Navratna category. After some time in 1997 only Govt decided to introduce one more category for small PSUs and that category name is “Miniratna”, this category is divided into two parts which are Miniratna Category-I and Miniratna Category-II. At last, Maharatna was announced in 2009, and 7 PSUs are added into this category from the Navratna category, but now in 2021, it increased to 10.
All information about these three categories are given below
Categories of PSUs in India 2021
There are four categories of Indian PSUs which are given below in a tabular column below
Maharatna PSUs of India in 2021
Maharatna PSUs are announced in 2009, and the companies are added in 2010, 7 companies are added to the Maharatna category. Now in 2021, there are 11 Maharatna companies, and the 11th Maharatna company is added recently on 12th October 2021, These all decisions are taken from the Department of public enterprise and Ministry of heavy industry and public enterprise.
Factors to become Maharatna PSU of India
There are six factors that are mandatory for the company to become the Maharatna corporation which is given below
- To become a Maharatna company it should be Navratna first otherwise it’s possible to become enter into the Maharatna category.
- The company should be registered on the Indian share market.
- The company should cross the 3 year Average turnover of the price bracket of 25000Cr.
- The total average annual net worth should be more than 15000Cr from the Last 3 years.
- The total profit of the company should be more than 5000Cr after paying the Tax from last 3 years.
- The company should be internationally renowned.
Advantage of Maharatna PSUs of India
The Maharatna company have the authority to invest in any project without taking permission of the Indian government, which is in India or outside India, it doesn’t matter, but some conditions have been applied which is given below
- Maharatna can invest 15% of total capital in any one project without taking permission of the government.
- The Maharatna can invest 30% of total capital in all the projects or up to 5000Cr without taking permission from the Indian government.
List of the Maharatna PSUs of India in 2021
These are the total of 11 Maharatna PSUs of India in 2021 which are given below in the tabular form
Navratna PSUs of India in 2021
Navratna PSUs are announced in 1997 and 9 companies are added into this category in the same year, at that time only 9 big PSUs are there, that’s why this category name is Navratna. Now in 2021, there are 13 PSUs that are come under the Navratna category. In September 2021, there are 14 Navratna PSUs but on 12th October 2021, one PSU is removed from it and added to the Maharatna category that is “Power Finance Corporation Limited” because this corporation fulfills all the requirements to become a Maharatna company.
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Factors to become Navratna PSUs of India
There are six factors to be a Navratna category company which are given below
- The company should be the first Miniratna Category-I company and have 4 independent directors on its board. To become Navratna PSU, Miniratna Category-I company have to score 60 out of 100 according to the below factors.
- The net profit of the company should be more than the net worth of the company.
- Total manpower cost over total production cost.
- Gross margin on capital employed.
- Earning per share
- Gross profit on total turnover.
Advantages of Navratna PSUs of India
The Navratna company have the authority to invest in any project without taking permission of the Indian government, which is in India or outside India, it doesn’t matter, but some conditions have been applied which is given below
- Navratna can invest 15% of total capital in any one project without taking permission of the government.
- The Navratna can invest 30% of total capital in all the projects or up to 1000Cr without taking permission from the Indian government.
List of Navratna PSUs of India in 2021
There are a total of 13 Navratna PSUs in India in 2021 which are given below in the tabular form
Miniratna PSUs of India in 2021
The Miniratna PSUs have two categories Miniratna Category-I and Miniratna Category-II, Miniratna category was introduced in 1997, and now in 2021 there are 61 PSUs in Miniratna Category-I and 12 PSUs in Miniratna category-II.
Factors to become Miniratna Category-I PSU of India
There are some eligibility factors to become Miniratna Category-I PSU of India
- The company should earn consistent profit in the last three years and any one-year profit among all three years should be more than 30Cr and have a positive net worth.
Factors to become Miniratna Category-II PSU of India
There are some eligibility factors to become Miniratna Category-II PSU of India
- The company should make continuous profit from last three years and have a positive net worth.
Advantages of Miniratna Category-I PSU of India
- Miniratna Category-I PSUs have the authority to invest in any project of their total net worth or up to 500Cr without taking permission of the Government of India.
Advantages of Miniratna Category-II PSU of India
- Miniratna Category-I PSUs have the authority to invest in any project of their 50% of net worth or up to 300Cr without taking permission of the Government of India.
List of Miniratna Category-I PSUs of India in 2021
There are a total of 61 PSUs that are come under Miniratna Category-I in 2021
List of Miniratna Category-II PSUs of India in 2021
There is a total of 12 PSUs that are come under the Miniratna Category-II PSUs in 2021.
I hope you get all the information about the public sector undertaking of India and the types of PSUs in India.
If you have any doubts then please feel free to ask in the comment section or contact us on the contact page.
Frequently asked questions about Indian PSUs
How many Maharatna PSUs are there?
There are 11 Maharatna PSUs till October 2021.
When PSUs was announced?
In 1997, Navratna and Miniratna PSUs are announced after a long time in 2010 Maharatan PSUs are announced.
Is PSU a government company?
Yes, PSU is a government company.
How many PSUs are there in Navratna Category?
There are 13 PSUs till October 2021, in Navratna Category.
How many PSUs are there in the Miniratna category?
As we know in Miniratna there are two categories, in Category-I there are 61 PSUs and in Category-II there are 12 PSUs.
