Public Sector Undertaking (PSU)

A Public Sector Undertaking (PSU) is a government-owned corporation or company in which the central or state government holds a majority stake (51% or more). PSUs are established to promote economic development, provide essential goods and services, and ensure social welfare. They operate in sectors like energy, banking, infrastructure, and manufacturing.

PSUs can be classified into:

• Central PSUs: Owned and controlled by the central government (e.g., ONGC, Indian Oil Corporation).
  
  
• State PSUs: Owned by state governments (e.g., Karnataka Power Corporation).
  
  

PSUs may be listed on stock exchanges and generate profits, but their primary aim is public interest rather than maximum profit. They are categorized as Maharatna, Navratna, or Miniratna based on their size, performance, and autonomy.

Example:
Oil and Natural Gas Corporation (ONGC) is a Maharatna PSU under the Ministry of Petroleum & Natural Gas. It explores and produces oil and gas for India’s energy needs.