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About Public Sector Undertakings (PSUs) - An Ultimate Guide

All You Need to Know About PSUs: List of Companies, Eligibility, Benefits, and More!

Public Sector Undertakings recruit the candidates based on the GATE score. They also recruit engineers for higher positions such as executive posts through GATE scores. However, some PSUs conduct their own exam to shortlist the candidates and recruit the best among them.

Here's a detailed log on PSUs, its classification, PSU jobs, benefits of acquiring them, and much more. Let's get started with what are PSUs?

While finishing this piece, you'll get to know:

  • Types of PSUs - Public and private sectors
  • How to get a PSU job via GATE exam?
  • Exam pattern for direct recruit process in PSU
  • What roles do PSUs have to offer?
  • Perks of having a PSU job
  • Answers to the topmost questions asked on PSU
  1. What are PSUs?
  2. Why opt PSU Jobs?
  3. Classification of PSUs
  4. Getting a PSU job through GATE Exam
  5. PSUs - Exam Pattern
  6. Eligibility criteria
  7. Roles and responsibilities of PSU jobs
  8. Benefits of Landing on PSU jobs
  9. Frequently Asked Questions on PSUs
1. What are PSUs?

Any government-owned enterprise can be referred to as a public sector undertaking (PSU) or a public sector enterprise. These enterprises are owned either wholly or partly by the government of India or one of the many states or territorial governments or both.

PSUs have brought a major change in economic growth as they have provided various job opportunities for many individuals. The public sector aims to increase exports, and they have been investing in technologies, automated equipment, and instruments, aiming to reduce the imports.

2. Why opt PSU Jobs?

Many candidates prefer PSU jobs as they provide a secured future with average to high income packages. You can choose a career in PSUs either on a technical or non-technical basis.

Candidates from technical backgrounds can apply to technical service companies like BSNL, BHEL, SAIL, etc. All these companies provide retirement packages and raised incentives based on your performance.

As PSUs offer postings in remote locations, people can stay wherever they reside without changing locations. Displaying a PSU work experience can also add more value to your business school interviews.

3. Classification of PSUs

Public Sector Undertaking is broadly classified into State Level Public Enterprises (SLPEs), Central Public Sector Enterprises (CPSEs), and Public Sector Banks (PSBs). Let's see them in detail below.

3.1 Maharatna CPSEs

To acquire the maharatna status, the organization must yield an average turnover of Rs.20,000 crores during the last three years. They should hold a navaratna status, and hence the navaratna can be promoted to maharatna companies.

  • Bharat Heavy Electricals Limited
  • Coal India Limited
  • GAIL (India) Limited
  • Indian Oil Corporation Limited
  • NTPC Limited
  • Oil & Natural Gas Corporation Limited
  • Steel Authority of India Limited
  • And more
3.2 Navaratna CPSEs

The primary requirement for getting a navaratna status is that the company must hold the status of miniratna category 1 along with some independent directors at the miniratna level. The company can invest up to Rs.1,000 crores without any apprehension from the government.

Here are some Navaratna CPSEs

  • Bharat Electronics Limited
  • Bharat Petroleum Corporation Limited
  • Container Corporation of India Limited
  • Engineers India Limited
  • Hindustan Aeronautics Limited
  • Hindustan Petroleum Corporation Limited
  • Mahanagar Telephone Nigam Limited
  • National Aluminium Company Limited
  • National Buildings Construction Corporation Limited
  • NMDC Limited
3.3 Miniratna CPSEs

This was formed by the Ministry of India and is further divided into two categories.

Miniratna Category 1

To obtain this category, the company must have produced valuable profits during the last three years. With this status, they can enter joint ventures or set either subsidiary or overseas companies.

Below are some from the list of Miniratna Category 1 CPSEs

  • Airports Authority of India
  • Antrix Corporation Limited
  • Balmer Lawrie & Co. Limited
  • Bharat Coking Coal Limited
  • Bharat Dynamics Limited
  • BEML Limited
  • Bharat Sanchar Nigam Limited
  • Bridge & Roof Company (India) Limited
  • Central Warehousing Corporation
  • Central Coalfields Limited
Miniratna Category 2

The company belonging to this category has a capital expenditure of up to Rs.300 crores or 50% of their net worth without seeking any approval from the higher directory.

A few of the Miniratna Category 2 CPSEs are listed here:

  • FCI Aravali Gypsum & Minerals India Limited
  • Ferro Scrap Nigam Limited
  • HMT (International) Limited
  • HSCC (India) Limited
  • India Trade Promotion Organization
  • Indian Medicines & Pharmaceuticals Corporation Limited
  • M E C O N Limited
  • Mineral Exploration Corporation Limited
  • National Film Development Corporation Limited
4. Getting a PSU job through GATE Exam

Although the initial requirements for getting a PSU job didn't include passing the GATE exam, in 2012, the eligibility criteria included having a good score in GATE Exam. This helped the PSUs analyze the candidates better even before they appeared for PSU exams.

People can also get PSU job without GATE scores, but the options are very limited. As most companies shortlist candidates through GATE, the possibility of getting a PSU job without GATE is not very encouraging. You need to be familiar with the exam pattern and eligibility criteria that these PSUs consider.

Want to know more about the PSU direct recruitment process, exam pattern, eligibility criteria and more? Keep reading to know more.

5. PSUs Exam Pattern

If the candidates don't want to appear for the GATE Exam, they must take the PSUs entrance exam. The following comprises the most common PSU exam pattern:

  • Technical Knowledge
  • General English
  • General Aptitude & Reasoning
  • General Knowledge & Current Affairs

The technical section of the exam includes 120 questions, and the aptitude part has 50 questions. Both technical and aptitude questions carry 0.25 negative marks. The technical questions will be from the main stream that the candidates preferred; this can be Electrical Engineering, Electronics and Communication, Mechanical Engineering, etc.

Read detailed information about PSU Exam Pattern here

6. Eligibility Criteria

Here are the eligibility criteria for taking the PSUs entrance exam

Academic Qualification: Bachelor's degree holder in technology/ Engineering/ architecture/ post diploma/ master's or a final year student. Some even prefer candidates with a master's degree.

Marks: Most PSUs recruit candidates with at least 60% of academic marks.

GATE and PSUs: A large number of public sectors prefer candidates with a good GATE score. If not through GATE Exam, then the candidates need to clear the recruitment tests conducted by the respective PSUs.

Age limit: 21 to 40 years depending on the enterprises you are selecting.

Click here to know more about the eligibility criteria and verify you are meeting them.

7. Roles and Responsibilities of PSU jobs

Most roles of PSUs include executive posts and recruited employees will be responsible for tasks handled over by senior officials. Employees will begin their PSU journey as a trainee and will serve a mandatory probation period of 6 months-1 year. Some recruits may be asked to sign service bonds that bind them to respective PSU for a period of 2-3 years.

Some of the PSU roles include:

  • Junior Engineer
  • Engineering Executive Trainee
  • Assistant Executive Trainee
  • Engineering Trainee
  • Systems Officer
  • Accounts Officer
  • Medical Laboratory Officer
  • Research Officer
  • And more!
8. Benefits of Landing on PSU jobs

From impressive salary packages to medical benefits, a PSU job can offer you several benefits. Here are some of them.

Handsome Salary Packages: PSUs offer a lucrative income to employees; the packages range from INR 7 to 20 lakh per annum. PSUs set the general age limit at 25 years, and it is a great opportunity for young age employees.

Job Security: A PSU job is always projected as a secure one. Unlike some IT who cut off employees owing to recession and other economic issues, PSUs provide a stable job security throughout your service period.

Allowance: From children's education to house rent allowance, PSUs offer several monetary benefits. Candidates have access to transport facility, paid leaves, soft loan policies, leave travel allowance, and much more. Employees also get free medical insurance for themselves and their family members.

Accommodation: As most PSUs are location specific, they offer a good place or quarters to stay in.

Soft Loan Terms: You will be eligible to get loans with 3-4% interest for a car or a house.

Career Growth: PSUs have mandatory promotion periods depending on meeting tasks and targets. Employees prefer to work long term mainly due to timely promotions and job stability. PSUs offer the best of both worlds.

Work-life balance: The constant shift timings enable a balanced work-life situation to every PSU employee. The synchronized leaves are one of the main perks of owning a PSU job.

9. Frequently Asked Questions on PSUs

Our experts have answered some queries that most students ask about PSUs.

Question: Is GATE mandatory to get employed in a PSU?

Answer: Many PSUs recruit candidates based on their GATE score. Here are some of the PSUs where GATE is mandatory: HPCL, Power Grid, NHPC, NTPC, Mazagon Dok Ltd., BPCL, IOCL, NLC, GAIL, NFL, Vizag Steel, CEL, NPCC, and MECL. However, some PSUs recruit candidate without the GATE score and conduct direct recruitment process.

Question: When can we apply for PSU via GATE exam?

Answer: Different PSUs conduct recruitments via GATE based on their convenience. You can check the official website of the public sector company to know more.

Question: Do the candidates need to study previous years' questions?

Answer: Studying the previous years' questions and solving them help one to reminiscence the syllabus with ease. The more you practice, the more you understand the types of questions. This will help you manage your time efficiently.

Question: Which PSUs conduct their own recruitment exam?

Answer: There are a number of PSUs who take their own exams. CIL, SAIL, ISRO, DRDO, VIZAG, BEL, EIL, BARC, etc. are a few of them.

Question: Can PSU jobs be obtained through the NET exam?

Answer: Yes, candidates qualified for NET exam either on UGC NET or CSIR NET can use their score to take part in PSU recruitments.

Question: Why a PSU job is given more hype?

Answer: The advantages of having a PSU job include job security, handsome packages, various allowance, shift flexibilities, and more. The jobs are also transferrable depending on the organization you get in. A public sector job can help secure an individual's future and also allow him/her to pursue their dreams.

Question: Which engineering stream should I choose to get into PSU?

Answer: Mechanical engineering, electrical engineering, civil engineering, and electrical & electronics based PSUs provide more job opportunities. So, it doesn't matter if you belong to a different stream, there's always a PSU for every engineering stream and you can always get into one.


Here's something to take away!

The salary, security, facilities, allowances, and a lot more make a job in PSU the dream job for many. Hope this rundown of PSUs helps you get a clear understanding on PSUs, roles of PSUs towards employment opportunities, eligibility criteria, and more.

As most vacancies in public sectors are filled based on GATE exam, candidates with a qualifying GATE score are given top priority. So, mastering the GATE exam with PSU-favored score can help you get easily into PSUs.

Do you want to crack the GATE exam and get shortlisted for a PSU recruitment process?

At VISHWA, we offer GATE + PSUs courses that help the candidates to ace the exam with a qualifying cutoff score. To learn more about our SMART GATE courses, get in touch with our experts.

Start Your PSU Journey with VISHWA's SMART GATE Courses

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