Public Sector Undertaking (PSU)
General Economics Beginnerसार्वजनिक क्षेत्र उपक्रम
Definition
A PSU is a company in which the government holds more than 50% equity. They include Maharatnas (ONGC, IOC, NTPC, Coal India), Navratnas (BHEL, GAIL), and Miniratnas. PSUs pay dividends to the government (non-tax revenue) and are candidates for disinvestment. There are over 350 Central PSUs in India.
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Why Public Sector Undertaking (PSU) Matters
Understanding public sector undertaking (psu) is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like public sector undertaking (psu) help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, public sector undertaking (psu) is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
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