Introduction of PSU

PSUs (Public Sector Undertakings)

The government owned corporations are termed as Public sector Undertakings (PSUs) in India. In a PSU majority (51% or more) of the paid share capital is held by central government or by any state government or partly by the central government and partly by one or more state governments. Several Public Sector Undertakings (PSUs) under the aegis of Government of India regularly provide tremendous employment opportunities in various technical and management areas.

Maharatna PSUs: Maharatna is the status given to top public sector enterprises where the companies have the authority to make foreign investments of upto Rs 5,000 crores without taking any government approval. To be qualified as Maharatna, the company should gain an annual net profit of over Rs. 5,000 crores, net worth of Rs. 15,000 crores and turnover of Rs. 25,000 crores over past three consecutive years. At present the companies which have Maharatna status are: SAIL, ONGC, NTPC, CIL, IOCL, BHEL and GAIL.

Navratna PSUs: Navratna status is conferred to the companies by the Department of Public Enterprises. To be qualified as a Navratna, the company must obtain a score of 60 out of 100. The score is based on six parameters which include net profit to net worth, total manpower cost to total cost of production or cost of services, PBDIT (Profit before depreciation, interest and taxes) to capital employed, PBDIT to turnover, EPS (Earning per Share) and inter-sectoral performance. Additionally, a company must first be a Miniratna and have four independent directors on its board before it can be made a Navratna. The Navratna status gives privileges to enhance financial and operational autonomy and empowers to invest up to Rs. 1000 crores or 15% of their net worth on a single project without seeking government approval. In a year, these companies can spend up to 30% of their net worth not exceeding Rs. 1000 crores. They will also have the freedom to enter joint ventures, form alliances and float subsidiaries abroad.

How to Prepare for PSU

  • PSUs Entrance Exam Question Paper mainly consists of two major sections:
  • Technical Section: Subject specialization of related stream.
  • Non-Technical Section: General Awareness, Current Affairs, English Language, Reasoning & Aptitude.
  • Hence to crack PSUs competitive exam, candidate should prepare for both technical and non-technical sections, where 50% to 70% questions are from technical and remaining questions from non-technical sections.
  • Be aware of exam pattern of different PSUs like number of technical questions, number of non-technical questions, negative marking, exam duration, marks per question etc.
  • Always make it a habit of referring to previous year question papers.
  • Prefer Reference books for derivations, equations, conceptual thought process, theory etc.
  • Use shortcut techniques for numerical solving instead of traditional methods to save time.
  • Practice previous year question papers and analyze the weak topics and concentrate more on those topics. Always try to solve question papers in a given time frame to obtain an idea as how many questions you are able to solve in given limits.

Group Discussion Round: Group Discussion is a crucial round conducted for shortlisted candidates. Good communication skills, topic knowledge, team spirit, leadership qualities, patience level and presence of mind are the major parameters to be considered.

Personal Interview: The personal interview is conducted to judge the personality of a candidate. Sound technical knowledge, positive attitude, body language, good communication skills play an important role to clear personal interviews. Candidates should be prepared with questions about their strengths and weaknesses and answer all questions confidently.

PSU Salary Structure

ORGANIZATION SECTOR STATUS SALARY STRUCTURE (Rs)
Oil & Natural Gas Corporation Limited (ONGC) Petroleum & Natural Gas Maharatna 24,900 - 50,500
Indian Oil Corporation Limited (IOCL) Petroleum & Natural Gas Maharatna 23,000 - 46,500
National Thermal Power Corporation Limited (NTPC) Power Maharatna 24,900 - 50,500
Steel Authority of India Limited (SAIL) Steel and Iron Maharatna 20,600 - 46500
Coal India Limited Mining Maharatna 20,600 - 46500
Bharat Petroleum Corporation Limited (BPCL) Petroleum & Natural Gas Navratna 23,000 - 46,500
Gas Authority of India Limited (GAIL) Petroleum & Natural Gas Navratna 24,900 - 50,500
Hindustan Petroleum Corporation Limited (HPCL) Petroleum & Natural Gas Navratna 24,900 - 50,500
Oil India Limited (OIL) Petroleum & Natural Gas Navratna 24,900 - 50,500
Power Grid Corporation of India Limited (PGCIL) Power Navratna 24,900 - 50,500
Bharat Electronics Limited (BEL) Defense Navratna 16,400 - 40,500
Hindustan Aeronautics Limited (HAL) Defense Navratna 16500 - 40500
National Mineral Development Corporation Limited (NMDC) Steel and Iron Navratna 16,400 - 40,500
Mahanagar Telephone Nigam Limited (MTNL) Communication & IT Navratna 24,900 - 50,500
Power Finance Corporation Limited Finance Navratna 24,900 - 50,500
National Aluminum Company Limited (NALCO) Mining Navratna 16,400 - 40,500
Shipping Corporation of India Limited Shipping Navratna 20,600 - 46500
Rural Electrification Corporation Limited Power Navratna 20500 - 26500
Bharat Earth Movers Limited (BEML Limited ) Defense Mini-Ratna 16,400 - 40,500
Mazagaon Docks Limited (MDL) Defense Mini-Ratna 16,400 - 40,500
Engineers India Limited (EIL) Petroleum & Natural Gas Mini-Ratna 20,600 - 46500
Bharat Sanchar Nigam Limited (BSNL) Communication & IT Mini-Ratna 16,400 - 40,500
RITES Infrastructure Mini-Ratna 16,400 - 40,500
National Hydroelectric Power Corporation (NHPC) Limited Power Mini-Ratna 20,600 - 46500
Airport Authority Of India Limited (AAI) Civil Aviation Mini-Ratna 16,400 - 40,500
Indian Space Research Organization (ISRO) Department of Space Govt. of India 15,600 - 39,100
Defense Research & Development Organization (DRDO) Defense Govt. of India 15,600 - 39,100
Bhabha Atomic Research Centre (BARC) Department of Atomic Energy Govt. of India 15,600 - 39,100
Electronics Corporation of India Limited (ECIL) Department of Atomic Energy Govt. of India 16,400 - 40,500
Delhi Metro Rail Corporation (DMRC) Transportation Govt. of India 20,600 - 46500

PSU Percentage

ORGANIZATION STREAMS APPLICABLE PERCENTAGE
GEN OBC SC/ST PH
Bridge & Roof co. (I) Ltd EE, ME, CE 70 70 60 60
BHEL EC, EE, ME, MT 65 65 60 60
ONGC ECE, EE, ME, CE, CS, IN, CH, 65 65 60 60
NTPC EC, EE, ME, EC, CS, IN 65 65 55 55
SAIL EC ,EE,ME,CS, IN, CH, Metallurgy, Ceramics 65 65 50 50
IOCL EC, EE, ME, CE, CS, IN 65 65 55 55
ISRO EC, EE, ME, CS 65 65 65 65
PGCIL EC, EE, CE, CS 65 65 Pass Pass
HAL EC, EE, ME, Industrial, Production CS, IN 65 60 60 60
NALCO EE, ME, CS, IT, C&I, Civil, Chemical, Metallurgy, Mining, 65 65 55 55
GAIL EC, EE, ME, CS, IN, CH 65 65 60 60
DRDO EC, ME, EE, CS, CH 60 60 55 55
DMRC EC, EE, ME, CE 60 60 55 55
GAIL ME, IN, CH 60 60 60 60
BPCL ME, CS, IN 60 60 55 55
MTNL EC, EE, CS, IT 60 60 55 55
HPCL EC, EE, ME, CE, IN, CH 60 60 50 50
BEL EC, EE, ME, CE, CS, CH, Telecommunication 60 60 Pass Pass
BARC EC,ME, CS, CH, Instrumentation, Metallurgy, & Control Engg 60 60 60 55
Indian Railways EC, EE, ME, CE, CS or M.sc in Chemistry or Applied Chemistry, Metallurgy, CH 60 60 55 55
ECIL EC, EE, ME, CE, CS, E&I 60 60 50 50
VIZAG STEEL EC, EE, ME, CE, CH, IN, Ceramics, CH, Metallurgy 60 60 50 50
NHPC EE, ME, CE 60 60 50 50
SJVNL EC, EE, ME, Civil, IT 55 50 50 50
BSNL Telecommunication, EC, Radio, CS, EE, IT, CE
BHARATI PRASAR EC, EE, IT

PSU Age Criteria

ORGANIZATION AGE CRITERIA
GEN OBC SC/ST PH
Bridge & Roof co. (I) Ltd 24 years 24-27 years 29 years 29 years-General 32 years-OBC 34 years- SC/ST
BHEL 27 years 27-30 years 32 years 32 years-General 35 years-OBC 37 years- SC/ST
ONGC 30 years 30-33 years 35 years 35 years-General 38 years-OBC 40 years- SC/ST
NTPC 27 years 27-30 years 32 years 32 years-General, 35 years-OBC, 37 years-SC/ST
SAIL 30 years 30-33 years 35 years 35 years-General, 38 years-OBC, 40 years- SC/ST
IOCL 26 years 26-29 years 31 years 31 years-General 34 years-OBC 36 years- SC/ST
ISRO 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
PGCIL 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
HAL 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
NALCO 30 years 30-33 years 35 years 35 years-General 38 years-OBC 40 years- SC/ST
GAIL 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
DRDO 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
DMRC 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
GAIL 26 years 26-29 years 31 years 31 years-General 34 years-OBC 36 years- SC/ST
BPCL 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
MTNL 30 years 30-33 years 35 years 35 years-General, 38 years-OBC, 40 years- SC/ST
HPCL 25 years 25-28 years 30 years 30 years-General 33 years-OBC 35 years- SC/ST
BEL 25 years 25-28 years 30 years 30 years-General 33 years-OBC 35 years- SC/ST
BARC 28 years 28-31 years 33 years 33 years-General 36 years-OBC 38 years- SC/ST
Indian Railways 22 to 35 age Group 22 to 35 age group + relaxable upto 3 years 22 to 35 age group +relaxable by 5 years 22 to 35 age group + 5 years-General 8 years-OBC 10 years- SC/ST
VIZAG STEEL 25 years 25-28 years 30 years 30 years-General 33 years-OBC 35 years- SC/ST
NHPC 30 years 30-33 years 35 years 35 years-General 38 years-OBC 40 years- SC/ST
BSNL 30 years 30-33 years 35 years 35 years-General 38 years-OBC 40 years- SC/ST
PRASAR BHARATI 27 years 27-30 years 32 years 32 years-General 35 years-OBC 37 years-SC/ST