Public sector undertakings in India
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A government-owned enterprise in India is called a Public Sector Undertaking (PSU) or a Public Sector Enterprise. These companies are wholly or partly owned by the Government of India or one of the many state or territorial governments or both together in parts. The officers working for these entities and their subsidiaries are gazetted officers. The employees subordinate to the officers working for these respective entities and their subsidiaries are full-fledged government employees. The company stock is majority-owned by the government in a PSU. PSUs are classified as Central public sector undertakings (CPSUs, CPSEs) which are wholly or partly owned by Government of India or State Level public sector undertakings (SLPSUs, SLPSEs) which are wholly or partly owned by state or territorial governments. In 1951, there were just 5 enterprises in the public sector in India, but in March 2019 this had increased to 348.[1] These enterprises represented a total investment of about ₹16.41 lakh crore as on 31 March 2019. The total paid-up capital as of 31 March 2019 stood at about ₹2.76 lakh crore. CPSEs have been earned revenue of about ₹25.43 lakh crore during the financial year 2018–19.[1]
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.[2] With the British Raj electing to leave agricultural production, and what little Western aping industrialisation to the Private sector, with commercial Tea processing, Jute mills, of the like the Acland Mill, Railways, Electricity generation, Banks, Coal mines, Steel mills, Civil Engineering funded, and owned by private individuals, of the like of Jamsetji Tata, families, or through Privately owned, and sometimes traded companies, on the likes of the Bombay Stock Exchange.[3] Vocal critiques, of this Western capitalist system, notably the Indian indepencence movement leading Mahatma Gandhi, instead advocated for a self-sufficient, largely agrarian, communal village based existence, for the population, in the first half of the 20th century.[4][5] While others criticised the New Delhi, and particularly the Presidencies for not establishing sufficient British Raj funded, Western style Schools, Public Libraries, Universities, Medical Schools, Engineering colleges, Hospitals and Asylums,[6][7] to permit the rapidly expanding population to replicate Britain's own industrialisation.[8][9][10]
Post Independence, the national consensus was in favour of rapid industrialisation of the economy which was seen as the key to economic development, improving living standards and economic sovereignty.[11] Building upon the Bombay Plan, which noted the requirement of government intervention and regulation, the first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development. Subsequently, the Planning Commission was formed by a cabinet resolution in March 1950 and the Industrial (Development and Regulation) Act was enacted in 1951 with the objective of empowering the government to take necessary steps to regulate industrial development.[12]
Prime Minister Jawaharlal Nehru promoted an economic policy based on import substitution industrialisation and advocated a mixed economy.[13] 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 (1956–60) 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 Dr. V. Krishnamurthy known as the "Father of Public sector undertakings in India". Indian statistician Prasanta Chandra Mahalanobis was instrumental to its formulation, which was subsequently termed the Feldman–Mahalanobis model.[14][15]
The major consideration for the setting up of PSUs was to accelerate the growth of core sectors of the economy; to serve the equipment needs of strategically important sectors, and to generate employment and income. A large number of "sick units" were taken over from the private sector. Additionally, Indira Gandhi's government nationalised fourteen of India's largest private banks in 1969, 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.[12] After the crisis, the government began dis-investing its ownership of several PSUs to raise capital and privatise companies facing poor financial performance and low efficiency.[16][17]
Governance[]
Certain public sector undertakings have been awarded additional financial autonomy. These companies are "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants".[18] Financial autonomy was initially awarded to nine PSUs as Navratna status in 1997.[19] Originally, the term Navaratna meant a talisman composed of nine precious gems. Later, this term was adopted in the courts of Gupta emperor Vikramaditya and Mughal emperor Akbar, as the collective name for nine extraordinary courtiers at their respective courts.
In 2010, the Government established the higher Maharatna category, which raises a company's investment ceiling from ₹1,000 crore to ₹5,000 crore.[20] The Maharatna firms 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[21] status are as follows:
Maharatna | Navratna | Miniratna Category-I | Miniratna Category-II | |
---|---|---|---|---|
Eligibility | Three years with an average annual net profit of over ₹2,500 crore, OR
Average annual Net worth of ₹10,000 crore for 3 years, OR Average annual Turnover of ₹20,000 crore for 3 years (against Rs 25,000 crore prescribed earlier)[22] |
A score of 60 (out of 100), based on six parameters which include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), capital employed, etc., AND
A company must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna. |
Have made profits continuously for the last three years or earned a net profit of ₹30 crore or more in one of the three years | Have made profits continuously for the last three years and should have a positive net worth. |
Benefits for investment | ₹1,000 crore – ₹5,000 crore, or free to decide on investments up to 15% of their net worth in a project | 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 (not exceeding ₹1,000 crores). | up to ₹500 crore or equal to their net worth, whichever is lower. | up to ₹300 crore or up to 50% of their net worth, whichever is lower. |
PSUs in India are also categorised based on their special non-financial objectives and are registered under Section 8 of Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).
Top Profit Making Central Public Sector Undertakings[]
CPSE Name | Net Profit (In ₹ crore) |
---|---|
Indian Oil Corporation Ltd. | 14,569 |
ONGC Ltd | 13,445[24] |
NTPC Ltd | 14,969 |
Coal India Ltd. | 16,700 |
Power Grid Corporation of India Ltd. | 9,939 |
Bharat Petroleum Corporation Ltd. | 7,132 |
Power Finance Corporation Ltd. | 6,953 |
Bharat Sanchar Nigam Ltd. | 6,040 |
Hindustan Petroleum Corporation Ltd. | 6,029 |
Gail (India) Ltd. | 6,029 |
Top Loss Making Central Public Sector Undertakings[]
CPSE Name | Net Loss (In ₹ crore) |
---|---|
Air India Limited | 15,475 |
India Post. | 14,904 |
Mahanagar Telephone Nigam Ltd. | 3,390 |
State Trading Corporation of India | 881 |
PEC Ltd. | 500 |
Orissa Mineral Development Company Ltd. | 452 |
MSTC Ltd. | 324 |
National Textile Corporation Ltd. | 315 |
Airline Allied Services Ltd. | 297 |
Chennai Petroleum Corporation Ltd. | 213 |
List of Central Public Sector Undertakings[]
As of 23 October 2019, there are 10 Maharatnas, 14 Navratnas and 74 Miniratnas.[26] There are nearly 348CPSEs (central public sector enterprises) in total.[23]
List of Maharatnas
- National Thermal Power Corporation (NTPC)
- Oil and Natural Gas Corporation (ONGC)
- Steel Authority of India Limited (SAIL)
- Bharat Heavy Electricals Limited (BHEL)
- Indian Oil Corporation Limited (IOCL)
- Hindustan Petroleum Corporation Limited (HPCL)
- Coal India Limited (CIL)
- Gas Authority of India Limited (GAIL)
- Bharat Petroleum Corporation Limited (BPCL)
- Power Grid Corporation of India (POWERGRID)
List of Navratnas
- Bharat Electronics Limited (BEL)
- Container Corporation of India (CONCOR)
- Engineers India Limited (EIL)
- Hindustan Aeronautics Limited (HAL)
- Bharat Sanchar Nigam Limited (BSNL)
- National Aluminium Company (NALCO)
- National Buildings Construction Corporation (NBCC)
- National Mineral Development Corporation (NMDC)
- NLC India Limited (NLCIL)
- Oil India Limited (OIL)
- Power Finance Corporation (PFC)
- Rashtriya Ispat Nigam Limited (RINL)
- Rural Electrification Corporation (REC)
- Shipping Corporation of India (SCI)
List of Miniratna-II
- Bharat Pumps & Compressors (BPC)
- Broadcast Engineering Consultants India
- Central Mine Planning and Design Institute
- Engineering Projects (India) Ltd. (EPI)
- FCI Aravali Gypsum and Minerals (India) Limited
- Ferro Scrap Nigam Limited
- HMT Limited
- ITI Limited
- MECON
- National Film Development Corporation of India (NFDC)
- PEC Ltd.
- Rajasthan Electronics & Instruments Limited
- Solar Energy corporation of India Ltd (SECI)
List of Miniratna-I
- Airports Authority of India (AAI)
- Antrix Corporation
- Balmer Lawrie (BL)
- Bharat Coking Coal Limited (BCCL)
- Bharat Dynamics Limited (BDL)
- Bharat Earth Movers Limited (BEML)
- Mahanagar Telephone Nigam Limited (MTNL)
- Bridge and Roof
- Central Electronics Limited
- Central Warehousing Corporation
- Central Coalfields Limited
- Chennai Petroleum Corporation (CPCL)
- Cochin Shipyard (CSL)
- Cotton Corporation of India Limited (CCIL)
- Dedicated Freight Corridor Corporation of India (DFCCIL)
- Dredging Corporation of India (DCI)
- EdCIL (India) Limited (EdCIL)
- Kamarajar Port
- Garden Reach Shipbuilders & Engineers (GRSE)
- Goa Shipyard (GSL)
- Haffkine Bio-Pharmaceutical Corporation Ltd.
- Heavy Engineering Corporation (HECL)
- Hindustan Copper (HCL)
- HLL Lifecare
- Hindustan Newsprint
- Housing and Urban Development Corporation
- (IDMC)
- Indian Drugs and Pharmaceuticals (IDPL)
- IFCI Ltd Industrial Finance Corporation of India Ltd
- IDFC Ltd.
- (IPRCL)
- India Tourism Development Corporation (ITDC)
- India Trade Promotion Organisation (ITPO)
- Indian Rare Earths (IREL)
- Indian Railway Finance Corporation
- Indian Railway Catering and Tourism Corporation (IRCTC)
- Indian Railway Stations Development Corporation
- Indian Immunologicals Limited
- Ircon International
- Kudremukh Iron Ore Company
- Mazagon Dock Limited
- Mahanadi Coalfields (MCL)
- MOIL
- Mangalore Refinery and Petrochemicals Limited (MRPL)
- Mishra Dhatu Nigam
- MMTC Ltd.
- MSTC Limited
- National Fertilizers (NFL)
- National Small Industries Corporation Limited
- National Seeds Corporation (NSC)
- NHPC Limited
- Northern Coalfields (NCL)
- North Eastern Electric Power Corporation Limited (NEEPCL)
- Numaligarh Refinery
- ONGC Videsh
- Pawan Hans
- Projects and Development India Limited (PDIL)
- RailTel Corporation of India
- Rail Vikas Nigam Limited
- Rashtriya Chemicals & Fertilizers (RCF)
- RITES
- SJVN Ltd.
- Security Printing and Minting Corporation of India
- Singareni Collieries Company
- South Eastern Coalfields (SECL)
- State Trading Corporation of India
- Telecommunications Consultants India (TCIL)
- THDC India Limited
- United Telecoms Limited
- Western Coalfields (WCL)
- Water and Power Consultancy Services
- Mineral Exploration Corporation Limited
List of other CPSEs
- AFC India Limited
- Agrinnovate India Ltd.
- BCG Vaccine Laboratory
- Bengal Chemicals and Pharmaceuticals Limited
- Bengal Immunity Limited
- Bharat Broadband Network
- Bharat Wagon and Engineering
- Bharat Immunologicals and Biologicals Corporation
- (BVFCL)
- BrahMos Aerospace
- Bharat Gold Mines Limited
- BHAVINI
- Biotech Consortium India Limited
- BEML Midwest Limited
- BHEL Electrical Machines Ltd. (EML)
- Cement Corporation of India
- City and Industrial Development Corporation
- Chenab Valley Power Projects
- Damodar Valley Corporation
- Delhi Metro Rail Corporation
- Electronics Corporation of India Limited
- Employees State Insurance Corporation
- Energy Efficiency Services Limited
- Export Credit Guarantee Corporation of India
- Fertilizer Corporation of India
- Fertilisers and Chemicals Travancore Limited
- Food Corporation of India
- Hemisphere Properties India Limited
- Hindustan Antibiotics Limited
- Hindustan Insecticides Limited
- Hindustan Organic Chemicals Limited
- Hindustan Prefab Limited
- Hindustan Salts Limited
- Hindustan Steelworks Construction Company Ltd.
- Hindustan Urvarak & Rasayan Limited
- Hindustan Vegetable Oils Corporation
- HLL Biotech Limited
- HSCC
- Hotel Corporation of India Limited
- HTL Ltd.
- Karnataka Soaps and Detergents Limited
- Khanij Bidesh India Ltd.
- Konkan Railway Corporation
- Konkan LNG
- Madras Fertilizers
- Mahanagar Gas
- National Industrial Corridor Development Corporation Limited
- National Informatics Centre Services Inc.
- National Projects Construction Corporation Ltd (NPCC)
- Narmada Hydroelectric Development Corporation
- Bharat Refractories Limited, Bokaro
- Noida Metro Rail Corporation
- NewSpace India Limited
- NSPCL
- IHB limited
- Indian Vaccine Corporation Limited
- Indian Medicine Pharmaceutical Corporation Ltd.
- Indian Potash Limited
- Indraprastha Gas
- Infrastructure Leasing & Financial Services
- Instrumentation Ltd.
- Intelligent Communication Systems India Limited
- Irrigation and Water Resources Finance Corporation Limited
- Petronet LNG
- Pipavav Railway Corporation Ltd. (PRCL)
- Power System Operation Corporation
- PTC India
- Punjab Logistics Infrastructure Limited
- Sagarmala Development Company
- SIDCUL CONCOR Infra Co. Limited
- Semiconductor Complex Limited
- Sethusamudram Corporation Limited
- Smith Stanisteet Pharmaceuticals Ltd
- Sponge Iron India Ltd (SIIL)
- STCI Finance Limited
- Railway Energy Management Company
- Ratnagiri Refinery & Petrochemicals Ltd. (RRPCL) - World's largest refinery
- Talcher Fertilizers Limited
- Transformers and Electricals Kerala Limited
List of CPSEs privatized
- Bharat Aluminium Company – in 2000
- Cochin International Airport
- CMC sold to Tata Consultancy Services in 2015
- Delhi Airport
- Hindustan Zinc Limited to – in 2001
- Hyderabad International Airport
- Trivandrum international airport
- Modern Food Industries sold to Hindustan Unilever in 2000
- Mumbai Airport
- VSNL to Tata Communications
- Indian Petrochemicals Corporation Limited sold to Reliance Industries
List of Central Public Sector Undertakings (Financial Services)[]
Presently there are 13 Nationalised Banks in India (Government Shareholding %, as of 1 April 2020)
- State Bank of India (56.2%)
- Bank of Baroda (63.74%)
- Union Bank of India (86.75%)
- Punjab National Bank (85.58%)
- Canara Bank (72.55%)
- Punjab & Sind Bank (79.62%)
- Indian Bank (81.73%)
- Bank of Maharashtra (87.01%)
- Bank of India (87.0535%)
- Central Bank of India (88.02%)
- Indian Overseas Bank (95%)
- UCO Bank (93.29%)
- Jammu & Kashmir Bank (63.18%)
Presently there are 43 Regional Rural Banks in India Since 1 April 2020 [27]
Andhra Pradesh
- Andhra Pragathi Grameena Bank[28]
- Andhra Pradesh Grameena Vikas Bank[28]
- Chaitanya Godavari Gramin Bank
- Saptagiri Gramin Bank
Arunachal Pradesh
- Arunachal Pradesh Rural Bank
Assam
Bihar
Chhattisgarh
- Chhattisgarh Rajya Gramin Bank
Gujarat
- Baroda Gujarat Gramin Bank
- Saurashtra Gramin Bank
Haryana
- Sarva Haryana Gramin Bank
Himachal Pradesh
- Himachal Pradesh Gramin Bank
Jammu and Kashmir
- J&K Grameen Bank
- Ellaquai Dehati Bank
Jharkhand
Karnataka
- Karnataka Gramin Bank
- Karnataka Vikas Grameena Bank
Kerala
Madhya Pradesh
- Madhyanchal Gramin Bank
- Madhya Pradesh Gramin Bank
Maharashtra
- Maharashtra Gramin Bank
- Vidharbha Konkan Gramin Bank
Manipur
- Manipur Rural Bank
Meghalaya
- Meghalaya Rural Bank
Mizoram
Nagaland
- Nagaland Rural Bank
Odisha
Puducherry
Punjab
- Punjab Gramin Bank
Rajasthan
- Baroda Rajasthan Kshetriya Gramin Bank
- Rajasthan Marudhara Gramin Bank
Tamil Nadu
- Tamil Nadu Grama Bank
Telangana
- Telangana Grameena Bank
Tripura
Uttar Pradesh
- Aryavart Bank
- Prathama UP Gramin Bank
- Baroda UP Bank[29]
Uttarakhand
West Bengal
- Paschim Banga Gramin Bank
- Bangiya Gramin Vikash Bank
- Uttarbanga Kshetriya Gramin Bank
Presently there are 7 Nationalised Insurance Companies (Government Shareholding %, as of 1 April 2020)
- Life Insurance Corporation
- General Insurance Corporation of India
- New India Assurance
- National Insurance Company Limited
- Oriental Insurance Company Limited
- United India Insurance Company
- Agriculture Insurance Company of India
Presently there are 28 Nationalised Financial Market Exchanges in India (Government Shareholding %, as of 1 April 2020)
- National Stock Exchange of India
- National Spot Exchange
- Inter-connected Stock Exchange of India
- Metropolitan Stock Exchange
- Multi Commodity Exchange
- National Commodity and Derivatives Exchange
- Over the Counter Exchange of India
- Bombay Stock Exchange
- Calcutta Stock Exchange
- Hyderabad Securities and Enterprise Limited
- Coimbatore Stock Exchange
- Saurashtra Kutch Stock Exchange
- Mangalore Stock Exchange
- Cochin Stock Exchange
- Bangalore Stock Exchange
- Ludhiana Stock Exchange
- Guwahati Stock Exchange
- Bhubaneswar Stock Exchange
- Jaipur Stock Exchange
- Pune Stock Exchange
- Madras Stock Exchange
- Uttar Pradesh Stock Exchange
- Madhya Pradesh Stock Exchange
- Vadodara Stock Exchange
- Delhi Stock Exchange
- Ahmedabad Stock Exchange
See also[]
- Public sector undertakings in Kerala
- Public sector undertakings in Tamil Nadu
- Disinvestment of Public Sector Units in India
- Indian company law
- List of Public service commissions in India
References[]
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(help) - ^ Odgers, George Allen (1925). "Education in British". JSTOR 20257440. Cite journal requires
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- ^ Sankar, T.L., Mishra, R.K., Lateef Syed Mohammed, A. (1994). "Divestments in Public Enterprises: The Indian Experience". International Journal Ofyear=1994. 7 (2): 69–88. doi:10.1108/09513559410055242.CS1 maint: multiple names: authors list (link)
- ^ Original govt. announcement about the Navratnas 1997 Archived 9 February 2012 at the Wayback Machine
- ^ "Maharatnas, Navratnas: India's best PSUs!". Rediff.
- ^ "Maharatna status for mega PSUs gets nod". The Times of India. 25 December 2009. Retrieved 29 December 2009.
- ^ "bsepsu.com". www.bsepsu.com. Retrieved 25 July 2016.
- ^ http://www.archive.india.gov.in/spotlight/spotlight_archive.php?id=78
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- ^ ONGC Ltd annual Report 2019-20
- ^ "Public Enterprises Survey 2018–19 | Department of Public Enterprises | MoHI&PE | GoI Page No. 5". dpe.gov.in. Retrieved 31 May 2020.
- ^ "Home | Department of Public Enterprises | MoHI&PE | GoI".
- ^ "list of SCB".
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(help) - ^ "दैनिक जागरण: बैंकों का विलय : एक हुए UP के तीन बैंक, अब बड़ौदा यूपी बैंक नाम से जाने जाएंगे".
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