PSU Govt Exam: A public sector undertaking (PSU) is a set of businesses in which the federal or state governments possess at least 51% of the shares. There are three different categories of PSUs in India: Maharatna, Navratna, and Miniratna (category I & II). Young people are drawn to careers in PSUs (public sector enterprises) by their prestige and numerous benefits, including good wage increases and a variety of bonuses. Let's learn more about the public sector undertaking's wage, age restriction, and eligibility requirements.
Top public sector corporations only receive this designation, which allows them to invest abroad up to Rs 5,000 crores without obtaining prior government approval. In the middle of 2010, the plan to establish industries and designate them as Maharatna took effect. It was done to ensure that the giant CPSEs can grow their operations and penetrate into the worldwide market. A company must have a net worth of Rs. 15,000 crores, a turnover of Rs. 25,000 crores, and an annual net profit of over Rs. 5,000 crores in order to be considered Maharatna. The following is a list of Maharatna companies:
- Limited by Bharat Heavy Electricals
- Indian Oil Corporation Limited
- India's Coal Limited
- GAIL (India) Limited
- Limited by Hindustan Petroleum Corporation
- The Limited Indian Oil Corporation
- Limited by NTPC
- Limited Oil & Natural Gas Corporation
- India's Power Grid Corporation Limited
- India's Steel Authority Limited
The Navratna PSUs
The Department of Public Enterprises bestows the Navratna designation on the organizations. The company needs to score 60 out of 100 in order to be designated a Navratna. The score is based on six parameters. There are parameters.
- Income per share ( Maximum-10)
- As a percentage of capital utilized (Maximum: 15)
- Intersectorial Displays (Maximum: 20)
- Turnover as Gross Profit (Maximum: 15)
- Net Income to Net Value (Maximum: 25)
- Cost of labor compared to the price of goods or services (Maximum: 15)
Having the Navratna designation allows a business to increase its financial and operational independence and to invest up to Rs. 1000 crores, or 15% of its net worth, in a single project without obtaining government clearance. Navratna businesses are permitted to spend up to 30% of their annual net worth, but no more than Rs. 1000 crores. Additionally, they will be free to form alliances, joint ventures, and foreign subsidiary flotations. The following is a list of Navratna companies:
- India's Bharat Electronics Limited (BEL)
- India's Container Corporation (CONCOR)
- Limited by Engineers India (EIL)
- Limited by Hindustan Aeronautics (HAL)
- Limited by the Mahanagar Telephone Nigam (MTNL)
- Company National Aluminum (NALCO)
- Corporation for National Buildings Construction (NBCC)
- Corporation for National Mineral Development (NMDC)
- India's NLC Limited (NLCIL)
- India's Oil Limited (OIL)
- Corporation for Power Finance (PFC)
- Ispat Nigam Rashtriya Limited (RINL)
- Corporation for Rural Electrification (REC)
- Indian Shipping Corporation (SCI)
The Indian government made the decision to allow those businesses that generate less revenue but are nonetheless competitive and effective more authority and autonomy at the end of 1997. These businesses are categorized into two groups and are known as Miniratnas. Different requirements apply to each category's eligibility.
The CPSEs under this category must have turned a profit for the previous three years in a row to meet the requirements for Miniratna Category 1. In any one of the three years, the companies' pre-tax earnings should have exceeded Rs. 30 crores.
Miniratna Category 2 Requirements: The CPSEs must be profitable and have a positive net worth during the last three years.