Question

Give a few examples of public sector activities and explain why the government has undertaken them.

Answer 1

Government usually undertakes sectors for the following reasons:

• Sectors with long gestation period.- Private investors usually do not invest in industries like the oil and gas exploration industry which has a huge gestation period .The govt. has taken over several such business.The Indian Oil Corporation is also one of the results of this kind of investment.
• Huge investments required- The government takes over industries that need huge investment. The Indian railways is also one area where the Indian Government still continues to make investments and also prepares annual budgets for it.
• Profit margins not very high - Some industries like the machinery industry though forms the base of all production, the profit margins are not very high. private investors usually are not ready to put their money in these sectors. Thus the Government has to take the initiative. The HMT or the Hindustan Machine Tools thus forms a part of Indian PSU.
• To bring Regional equality- investors are ready to invest in areas that are well connected and have already market. This could cause regional disparities. Inorder to bring the backward area in par , the Government of India has taken steps to invest in the remote coal mining areas by establishing the Coal India Limited.
• Areas of Strategic importance- Some sectors like arms and defense armaments need the involvement of the Government directly. Thus the Pawan Hans Helicopters Limited etc are government PSUs.

Following is the list of Indian PSU's:

Maharatna CPSEs

1. Coal India Limited
2. Indian Oil Corporation Limited
3. NTPC Limited
4. Oil & Natural Gas Corporation Limited
5. Steel Authority of India Limited

Navratna CPSEs

1. Bharat Electronics Limited
2. Bharat Heavy Electrical Limited
3. Bharat Petroleum Corporation Limited
4. GAIL (India) Limited
5. Hindustan Aeronautics Limited
6. Hindustan Petroleum Corporation Limited
7. Mahanagar Telephone Nigam Limited
8. National Aluminium Company Limited
9. NMDC Limited
10. Neyveli Lignite Corporation Limited
11. Oil India Limited
12. Power Finance Corporation Limited
13. Power Grid Corporation of India Limited
14. Rashtriya Ispat Nigam Limited
15. Rural Electrification Corporation Limited
16. Shipping Corporation of India Limited

Miniratna Category - I CPSEs

1. Airports Authority of India
2. Antrix Corporation Limited
3. Balmer Lawrie & Co. Limited
4. Bharat Dynamics Limited
5. BEML Limited
6. Bharat Sanchar Nigam Limited
7. Bridge & Roof Company (India) Limited
8. Central Warehousing Corporation
9. Central Coalfields Limited
10. Chennai Petroleum Corporation Limited
11. Cochin Shipyard Limited
12. Container Corporation of India Limited
13. Dredging Corporation of India Limited
14. Engineers India Limited
15. Ennore Port Limited
16. Garden Reach Shipbuilders & Engineers Limited
17. Goa Shipyard Limited
18. Hindustan Copper Limited
19. HLL Lifecare Limited
20. Hindustan Newsprint Limited
21. Hindustan Paper Corporation Limited
22. Housing & Urban Development Corporation Limited
23. India Tourism Development Corporation Limited
24. Indian Railway Catering & Tourism Corporation Limited
25. IRCON International Limited
26. KIOCL Limited
27. Mazagaon Dock Limited
28. Mahanadi Coalfields Limited
29. Manganese Ore (India) Limited
30. Mangalore Refinery & Petrochemical Limited
31. Mishra Dhatu Nigam Limited
32. MMTC Limited
33. MSTC Limited
34. National Fertilizers Limited
35. National Seeds Corporation Limited
36. NHPC Limited
37. Northern Coalfields Limited
38. Numaligarh Refinery Limited
39. ONGC Videsh Limited
40. Pawan Hans Helicopters Limited
41. Projects & Development India Limited
42. Railtel Corporation of India Limited
43. Rashtriya Chemicals & Fertilizers Limited
44. RITES Limited
45. SJVN Limited
46. Security Printing and Minting Corporation of India Limited
47. South Eastern Coalfields Limited
48. State Trading Corporation of India Limited
49. Telecommunications Consultants India Limited
50. THDC India Limited
51. Western Coalfields Limited
52. WAPCOS Limited

Miniratna Category-II CPSEs

53. Bharat Pumps & Compressors Limited
54. Broadcast Engineering Consultants (I) Limited
55. Central Mine Planning & Design Institute Limited
56. Ed.CIL (India) Limited
57. Engineering Projects (India) Limited
58. FCI Aravali Gypsum & Minerals India Limited
59. Ferro Scrap Nigam Limited
60. HMT (International) Limited
61. HSCC (India) Limited
62. India Trade Promotion Organisation
63. Indian Medicines & Pharmaceuticals Corporation Limited
64. M E C O N Limited
65. National Film Development Corporation Limited
66. National Small Industries Corporation Limited
67. P E C Limited
68. Rajasthan Electronics & Instruments Limited