PSU: Full Form and Meaning
PSU stands for Public Sector Undertaking.
Key Points about PSUs:
- Definition:
A Public Sector Undertaking is a government-owned corporation or enterprise. These businesses are established to provide services and products that are significant to the economy and welfare of the public.
Ownership:
PSUs are owned by the central government or state governments.
Objectives:
The main objectives of PSUs include:
- Promoting economic growth.
- Generating employment.
- Ensuring equitable distribution of resources.
Examples:
Some well-known PSUs in India include:
- Indian Oil Corporation Limited (IOCL)
- Bharat Heavy Electricals Limited (BHEL)
- Steel Authority of India Limited (SAIL)
- National Thermal Power Corporation (NTPC)
Classification:
PSUs are classified into two categories:
- Miniratna: Smaller PSUs with financial autonomy.
- Maharatna: Large PSUs with greater financial and operational autonomy.
Importance:
- PSUs play a crucial role in:
- Infrastructure Development
- Resource Management
- Public Welfare Initiatives
Understanding PSUs is essential for grasping the economic and social framework of a country, particularly in India where they form a significant part of the economy.