Public Sector Undertakings, or PSUs, are not just government-owned enterprises—they are pillars of national development.. They are the unsung heroes of India’s development story—nation builders beyond business. For decades, PSUs have played a central role in transforming a newly independent India into a self-reliant and industrially progressive nation.
From building steel plants to laying railway lines, from supplying oil and gas to expanding financial inclusion, India’s PSUs have shouldered responsibilities that went far beyond commercial interests. They have helped shape the economic, social, and even emotional fabric of the country.
As we celebrate PSU Day on April 10, it is the perfect time to revisit the purpose, contributions, and ongoing relevance of these vital institutions.
PSU Day – Celebrating a National Legacy
The date commemorates the formation of the Bureau of Public Enterprises in 1965, which eventually developed into the Department of Public Enterprises under the Ministry of Finance.
PSU Day is a tribute to the immense contributions made by PSU employees, many of whom work in challenging terrains—from deserts and mountains to tribal belts and deep sea oil rigs.
The day is observed through:
- Award ceremonies recognizing employee achievements.
- Special CSR drives and blood donation camps.
- Cultural and knowledge-sharing events.
- Strategy meetings focused on improving public service delivery.
It’s a day to celebrate public spirit, resilience, and the idea that profit and public welfare can go hand in hand.
The Birth of India’s PSUs: Laying the Foundation of Progress
When India gained independence in 1947, the country faced severe challenges: poverty, unemployment, and a weak industrial base. The private sector was still in its infancy and lacked the capacity and willingness to take on large-scale development projects. The government took the initiative and established public sector enterprises to build key industries and infrastructure.
The vision was led by India’s first Prime Minister, Pandit Jawaharlal Nehru, who called PSUs the “temples of modern India.” His idea was to create self-sufficiency in critical areas like steel, energy, heavy engineering, and mining.
The early PSUs such as Steel Authority of India Ltd. (SAIL), Oil and Natural Gas Corporation (ONGC), Bharat Heavy Electricals Ltd. (BHEL), and Hindustan Aeronautics Ltd. (HAL) played a key role in kickstarting India’s industrial transformation.
Today, India has over 400 active PSUs, including both Central and State Public Enterprises. These entities employ over 10 lakh people directly and contribute to several sectors—manufacturing, energy, services, defence, infrastructure, and more.
Not Just Profits, But Purpose
What makes PSUs unique is their dual objective—to generate economic value and serve the nation. Unlike private companies, PSUs often operate in remote areas, take up loss-making operations, or invest in long-gestation projects because the public good outweighs commercial gain.
Take for example:
- Oil India Ltd., which brought exploration and employment to the North East.
- NHPC, which developed hydropower projects in the Himalayan region, delivering electricity to remote and underserved areas.
- BSNL, which connected the unconnected, often at a loss, just to ensure telecom access in villages and border areas.
PSUs are also vital to India’s Atmanirbhar Bharat initiative. Be it producing fighter jets, developing indigenous energy resources, or building smart cities—PSUs are leading from the front.
The CSR Spirit: Giving Back to Society
One of the most visible contributions of PSUs is their work under CSR. According to government guidelines, profit-making PSUs are required to allocate a minimum of 2% of their average net profits from the past three financial years towards CSR initiatives.
In the financial year 2022-23, Central PSUs collectively spent over ₹4,500 crore on CSR. Their activities covered:
- Building schools, libraries, and hostels for underprivileged children.
- Setting up health camps, mobile clinics, and hospitals.
- Constructing toilets and drinking water facilities in villages.
- Promoting skill training for youth and women empowerment.
- Supporting environmental conservation and renewable energy.
Some noteworthy examples:
- Coal India Ltd. supports nearly 20,000 students in rural India through scholarships and school infrastructure.
- NTPC runs girl empowerment missions in over 30 districts.
- GAIL India Ltd. has funded over 120 skill development centers across the country.
In many regions, the presence of a PSU is the reason for better roads, schools, and healthcare facilities.
Navigating Modern Challenges
While PSUs have played a pivotal role in India’s growth, they are now operating in a far more competitive and globalized world. There is increasing pressure to:
- Modernize systems and adopt digital technologies.
- Reduce inefficiencies and improve productivity.
- Compete with nimble private players in sectors like telecom, logistics, and energy.
The government has also initiated strategic disinvestment in select PSUs to enhance their value and introduce greater market discipline. Notable examples include the privatization of Air India and the partial stake sales in LIC and BPCL.
However, experts agree that PSUs still have a key role to play, especially in sectors where public interest is vital—energy, defence, banking, and infrastructure. With the right reforms, autonomy, and leadership, PSUs can continue to thrive and contribute.
PSUs in Times of Crisis: Always There
PSUs have played a vital role in supporting the nation during emergencies. During the COVID-19 pandemic:
- BHEL and SAIL converted their facilities into COVID care centers.
- ONGC and Indian Oil funded ventilators and oxygen plants.
- Railway PSUs ran special trains for migrant workers.
- Many PSUs provided food kits and PPEs to frontline workers.
Even during natural disasters—like floods, cyclones, or earthquakes—PSUs are often the first responders, offering relief and rehabilitation.
India’s PSUs are not just companies; they are institutions of national trust. For decades, they have taken bold steps in unknown territories, invested in people, and created infrastructure where none existed.
Their success cannot just be measured in balance sheets, but in the millions of lives uplifted, the villages connected, the skills built, and the dreams enabled.
As India charts its path to becoming a $5 trillion economy, the role of PSUs will be more relevant than ever—driving inclusive growth, sustainability, and self-reliance.
This April, let’s not just celebrate PSU Day, but salute these organizations and their people for being true Nation Builders—beyond business.
