The Full Form of ‘PSU’ in Industry is ‘Public Sector Undertakings’.
Full Form of PSU
Public Sector Undertakings (PSUs) are companies owned and operated by the government of a country. The term is used mainly in India, where it was first implemented in 1951. PSUs have been a major part of India’s economic development since then.
PSUs are divided into two categories: Central Public Sector Enterprises (CPSEs) and State Level Public Enterprises (SLPEs). CPSEs are the larger enterprises owned by the federal government, while SLPEs are established by individual states. Both types of enterprises have similar objectives: to promote balanced regional growth, generate employment opportunities, provide essential goods and services at reasonable prices, and increase investment in infrastructure projects like roads, railways, ports etc.
The main objectives of PSUs are to achieve self-reliance through technological advancement and create employment opportunities for the people. They also aim to improve public welfare by providing essential services like food distribution, healthcare, education etc. In addition to this, PSUs also work towards improving the quality of life in rural areas by providing clean water supply and electricity connections.
In terms of their structure and operations, PSUs are governed by laws that determine how they should function; most notably The Companies Act 1956 and The Public Enterprises Policy 1989. All PSUs must adhere to these laws as well as other administrative regulations set forth by the government.
The government plays a role in the management of PSUs too – it appoints members to its Board of Directors who then decide on various aspects related to its operations including financial performance goals and strategies for achieving these goals. In addition, there is a certain degree of autonomy within each PSU which allows them to make decisions without any interference from external sources.
The success or failure of a PSU largely depends on its ability to combine top-class management with efficient operational practices – both supported by adequate financial resources from the government or through market capitalization or borrowing from banks or markets if needed. Additionally, effective monitoring systems for assessing performance must be put in place so that necessary corrective action can be taken when required.
In conclusion, PSUs play an important role in India’s economic growth due to their ability to strengthen infrastructure developments across different sectors while also providing essential services at reasonable prices throughout the country. As such they remain an integral part of India’s economy despite several challenges faced over time
Queries Covered Related to “PSU”
- What is the full form of PSU in Industry?
- Explain full name of PSU.
- What does PSU stand for?
- Meaning of PSU
