A state-owned enterprise is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a Public Sector Undertaking. PSUs may be classified as Central Public Sector Enterprises (CPSEs), public sector banks (PSBs) or State Level Public Enterprises (SLPEs).

PSU’s recruitment rules are changed from time to time. From year 2013 onwards almost every PSU is recruiting through GATE exam. And few other PSU’s are taking their own exam. Government of India revised its rules and regulations and classified the PSUs in several categories as follows:

(I) MAHARATNA – PSU’s which will have, 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.

(II) NAVRATNA – PSU’s which 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 psu must first be a Miniratna and have 4 independent directors on its board before it can be made a Navratna.

(III) MINIRATNA – I – 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

(IV) MINIRATNA – II – Have made profits continuously for the last three years and should have a positive net worth.

For the list of PSUs, Click here...