Public Sector Undertakings in India

Public Sector Undertakings in India are government-owned entities in which at least 51% of stake is under the ownership of the Government of India or state governments. These types of firms can also be a joint venture of multiple PSUs. These entities perform commercial functions on behalf of the government.
Depending on the level of government ownership, PSUs are officially classified into two categories: Central Public Sector Undertakings, owned by the central government or other CPSUs; and State Public Sector Undertakings, owned by state governments. CPSU and SPSU is further classified into Strategic Sector and Non-Strategic Sector. Depending on their financial performance and progress, CPSUs are granted the status of Maharatna, Navaratna, and Miniratna.
Following India's independence in 1947, the limited pre-existing industries were insufficient for sustainable economic growth. The Industrial Policy Resolution of 1956, adopted during the Second Five-Year Plan, laid the framework for PSUs. The government initially prioritized strategic sectors, such as communication, irrigation, chemicals, and heavy industries, followed by the nationalisation of corporations. PSUs subsequently expanded into consumer goods production and service areas like contracting, consulting, and transportation. Their goals include increasing exports, reducing imports, fostering infrastructure development, driving economic growth, and generating job opportunities. Each PSU has its own recruitment rules and employment in PSUs is highly sought after in India due to high pay and its job security, with most preferring candidates with a GATE score. These jobs are very well known for very high pay scale compared to other Government jobs such as UPSC, facilities such as bungalow, pensions and other subsidized facility and for also very good planned townships settlement life. A PSU non-executives such as workers have a huge payscale difference compared to private sector.
In 1951, there were five PSUs under the ownership of the government. By March 2021, the number of such government entities had increased to 365. These government entities represented a total investment of about ₹16,410,000,000,000 as of 31 March 2019. Their total paid-up capital as of 31 March 2019 stood at about ₹200.76 lakh crore. CPSEs have earned a revenue of about ₹24,430,000,000,000 + ₹1,000,000,000,000 during the financial year 2018–19.

History

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.
The British Raj had previously elected to leave agricultural production to the Private sector, with tea processing firms, jute mills, 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.
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. 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.
Post-Independence, the national consensus turned in favor of rapid industrialisation of the economy, a process seen as the key to economic development, improved living standards and economic sovereignty. 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 Act was enacted in 1951 with the objective of empowering the government to take necessary steps to regulate industry.
The first Prime Minister of India, Jawaharlal Nehru, promoted an economic policy based on import substitution industrialisation and advocated a mixed economy. 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 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 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.
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. 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.

Management and classification

The public sector undertakings are headed by the head of board of directors also known as chairperson cum managing director cum chief executive officer and a vice chairperson cum deputy managing director cum co-chief executive officer along with the members of the board of directors also known as executive director cum c-level officer who are Group 'A' gazetted officers appointed by the President of India in case of central public sector undertakings, its subsidiaries & its divisions and appointed by the Governor of States of India in case of state public sector undertakings, its subsidiaries & its divisions.
All of the public sector undertakings have been awarded additional financial autonomy. Public Sector Undertakings are government establishments that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support in their drive to become global giants". Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997. Originally, the term Navaratna meant a talisman composed of nine precious gems. Later, this term was adopted in the courts of the 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 crores. 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 status are as follows:

Category	Eligibility	Benefits for investment
Maharatna	Three years with an average annual net profit of over ₹2,500 crores, OR The average annual Net worth of ₹10,000 crores for three years, OR Average annual Turnover of ₹20,000 crore for three years	₹1,000 crore – ₹5,000 crores, or free to decide on investments up to 15% of their net worth in a project
Navaratna	A score of 60, based on six parameters which include net profit, net worth, total manpower cost, the total cost of production, cost of services, PBDIT, 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.
	Have made profits continuously for the last three years or earned a net profit of ₹30 crores or more in one of the three years	up to ₹500 crore or equal to their net worth, whichever is lower.
	Have made profits continuously for the last three years and should have a positive net worth.	up to ₹300 crores or up to 50% of their net worth, whichever is lower.

PSUs in India are also categorized based on their special non-financial objectives and are registered under Section 8 of Companies Act, 2013.

Top profit making CPSUs

List of CPSUs

Public Sector Undertakings can be classified as Central Public Sector Undertakings or State Public Sector Undertakings. CPSUs are administered by the Ministry of Heavy Industries and Public Enterprises. The Department of Public Enterprises, Ministry of Finance is the nodal department for all the Central Public Sector Undertakings.
As of 2025, there are 14 Maharatnas, 26 Navratnas and 65 Miniratnas.

List of Maharatna

;Miniratna Category-I

Airports Authority of India
ONGC Videsh Limited
Antrix Corporation
Balmer Lawrie
Braithwaite & Co.
Bharat Coking Coal Limited
Bharat Dynamics Limited
Bharat Earth Movers Limited
Bharat Sanchar Nigam Limited
Bridge and Roof Company (India)
Central Electronics Limited
Central Coalfields Limited
Central Mine Planning & Design Institute Limited
Mishra Dhatu Nigam Limited
Chennai Petroleum Corporation
Cochin Shipyard
Cotton Corporation of India Limited
EdCIL (India) Limited
Garden Reach Shipbuilders & Engineers
Goa Shipyard
Hindustan Copper
HLL Lifecare
Hindustan Newsprint
Hindustan Paper Corporation Limited
Hindustan Steelworks Construction Ltd.
HSCC India Limited
Indian Tourism Development Corporation
Indian Rare Earths
India Trade Promotion Organisation
Kudremukh Iron Ore Company
Mahanadi Coalfields
MOIL Limited
Mangalore Refinery and Petrochemicals Limited
Mineral Exploration Corporation Limited
Mishra Dhatu Nigam
MMTC Ltd.
MSTC Limited
National Fertilizers
National Projects Construction Corporation
National Small Industries Corporation
National Seed Corporation
Northern Coalfields
North Eastern Electric Power Corporation Limited
Pawan Hans Helicopters Limited
Projects and Development India Limited
Rashtriya Chemicals & Fertilizers
Security Printing and Minting Corporation of India
South Eastern Coalfields
Telecommunications Consultants India
THDC India Limited
Western Coalfields
WAPCOS Limited

;Miniratna Category-II

Artificial Limbs Manufacturing Corporation of India
Broadcast Engineering Consultants India Limited
Engineering Projects Limited
FCI Aravali Gypsum and Minerals (India) Limited
HMT International Limited
Indian Medicines Pharmaceutical Corporation Limited
Ferro Scrap Nigam Limited
MECON
National Film Development Corporation of India
Rajasthan Electronics and Instruments Limited
List of Other CPSUs
Advanced Weapons and Equipment India Limited
Agrinnovate India Ltd.
AFC India Limited
Anushakti Vidhyut Nigam Limited
Aravali Power Company Private Limited Jharli, Jhajjar
Armoured Vehicles Nigam Limited
Bengal Chemicals and Pharmaceuticals Limited
Bengal Immunity Limited
Bharat Broadband Network
Bharat Coal Gasification and Chemicals Ltd
Bharat Gold Mines Limited
Bharat Immunologicals and Biologicals Corporation
Bharat Refractories Limited, Bokaro
Bharat Wagon and Engineering
Bharatiya Reserve Bank Note Mudran
BHAVINI
BEML Midwest ltd.
BHEL Electrical Machines Ltd.
Bhor Sagar Port Limited
Biotech Consortium India Limited
Brahmaputra Valley Fertilizer Corporation Ltd
Brahmaputra Cracker and Polymer Limited
BrahMos Aerospace
Bundelkhand Saur Urja Limited
Convergence Energy Services Limited
CSC e-Governance Services India 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
Dedicated Freight Corridor Corporation of India
Delhi Metro Rail Corporation
Delhi Transco Limited
Delhi Transport Corporation
Deposit Insurance and Credit Guarantee Corporation
Digital India Corporation
Dredging Corporation of India
Electronics Corporation of India Limited
Energy Efficiency Services Limited
Export Credit Guarantee Corporation of India
Fertilisers and Chemicals Travancore Limited
Fertilizer Corporation of India
Food Corporation of India
Fresh & Healthy Enterprises Limited
Gliders India Limited
Green Gas Limited
Green Valley Renewable Energy Limited
Grid Conductors Ltd
Hemisphere Properties India Limited
Hindustan Antibiotics Limited
Hindustan Fertilizers Corporation Limited
Hindustan Insecticides Limited
Hindustan Organic Chemicals Limited
Hindustan Prefab Limited
Hindustan Salts Limited
Hindustan Shipyard Limited (HSL)
Hindustan Teleprinters Limited
Hindustan Urvarak & Rasayan Limited (HURL)
Hindustan Vegetable Oils Corporation
HSCC Limited
IHB Limited
Indian Dairy Machinery Company Ltd.
India Debt Resolution Company Limited
India Government Mint
India Infrastructure Finance Company Limited
India Optel Limited
India Ports Global Limited
India SME Asset Reconstruction Company Limited
Indian Financial Technology and Allied Services
Indian Highway Management Company Limited
Indian Immunologicals Limited
Indian Medicine Pharmaceutical Corporation Ltd.
Indian Port Rail Corporation Limited(IPRCL)
Indian Potash Limited
Indian Strategic Petroleum Reserves Ltd
Indian Vaccine Corporation Limited
Indraprastha Gas Limited
Indradhanush Gas Grid Limited
Infrastructure Leasing & Financial Services
Industrial Finance Corporation of India Limited
Inland & Coastal Shipping Ltd.
Inland Waterways Authority of India
Instrumentation Limited
Intelligent Communication Systems India Limited
Irrigation and Water Resources Finance Corporation Limited
Jal Power Corporation Ltd.
Jute Corporation of India
Karnataka Soaps and Detergents Limited
Karnataka Vijayanagar Steel Limited, NMDC Steel
Khadi Natural
Khanij Bidesh India Ltd.
Kolkata Metro Rail Corporation
Konkan Railway Corporation
Konkan LNG
Krishnapatnam Railway Company Limited
Life Spring Hospitals Ltd.
Madras Fertilizers
Mahanagar Gas
Millennium Telecom Ltd.
Meja Urja Nigam Private Limited
National Capital Region Transport Corporation
National Highways and Infrastructure Development Corporation Limited
National Highways Logistics Management Company
National High Power Test Laboratory
Narmada Hydroelectric Development Corporation
National Industrial Corridor Development Corporation Limited
National Informatics Centre Services Inc.
National Jute Manufactures Corporation Limited
National Land Monetisation Corporation
National Payments Corporation of India
National Projects Construction Corporation Ltd
National Textile Corporation
NIIF Infrastructure Finance Limited
NewSpace India Limited
NEPA Mills Ltd.
NSEIT
NSPCL
Open Network for Digital Commerce
Orissa Drugs & Chemicals Ltd
Petronet LNG
Pipavav Railway Corporation Ltd.
Power System Operation Corporation
Praga Tools
Prize Petroleum Company Limited
Protean eGov Technologies Ltd
PTC India
Punjab Logistics Infrastructure Limited
Railway Energy Management Company Limited
Rajasthan Drugs & Pharmaceuticals Limited
Ramagundam Fertilizers and Chemicals Limited
Ratnagiri Gas and Power
Ratle Hydroelectric Power Corporation
Receivables Exchange of India Ltd
Sagarmala Development Company
Semiconductor Complex Limited
Smith Stanisteet Pharmaceuticals Limited
Sethusamudram Corporation Limited
Security Printing and Minting Corporation of India
Sponge Iron India Ltd
STCI Finance Limited
State Farms Corporation of India
Talcher Fertilizers Limited.
Tourism Finance Corporation Of India Ltd.
The Industrial Credit Company Limited
UTI Infrastructure Technology and Services Limited
Triveni Structurals Limited
Utkarsha Aluminium Dhatu Nigam Limited
UV Asset Reconstruction Company Limited
Indo-Russia Rifles
Munitions India Limited
Troop Comforts Limited
Yantra India Limited
Tusco Limited.
List of CPSUs privatized

Air India – sold to Tata Group in 2021
Axis Bank, split from UTI was privatized in 2007
Bharat Aluminium Company – sold to Vedanta Limited in 2000, BALCO closed in 2002
CMC Limited – sold to Tata Consultancy Services in 2001, merged with TCS in 2016
Lagan Engineering – in 2001
Hindustan Zinc Limited – sold to Vedanta Limited in 2001
HTL Limited - sold to HFCL in 2001
Maruti Udyog Limited - sold to Suzuki
Modern Food Industries – sold to Hindustan Unilever in 2000
Neelachal Ispat Nigam Limited - sold to Tata Steel Long Products in 2022
Paradeep Phosphates Limited - sold to Adventz Group in 2001
Videsh Sanchar Nigam Limited – sold to Tata Group in 2002
Jessop & Company – sold to Ruia Group in 2003 but bankrupt in 2013
ICICI Bank, ICICI Ltd. a government entity, parent company of ICICI Bank was merged with ICICI Bank leading to its privatization in 2002.
Indian Petrochemicals Corporation Limited – sold to Reliance Industries in 2002 and merged with reliance in 2007.
IDFC in 2005 via IPO cutdown ownership from 100% to 34.91% In October 2024 IDFC merged into IDFC Bank leading to full privatization.
Protean eGov Technologies, formerly known as NSDL e-Gov Infrastructure Limited, Government of India to sell stakes via SUUTI, IDBI Bank, Union Bank of India and State Bank of India through IPO in 2023.
List of Central PSUs (Financial Services)