Top 10 Best Public Sector Companies In India In 2023

Top 10 Public Sector Companies in India in 2023

The Indian economy, which incorporates public companies and enterprises, primarily consists of public sector enterprises. Public sector enterprises are companies that the federal government owns—an organization, statutory Corporation, or nationalized financial institution perhaps be a corporation. Employees of the federal government make up these corporations.

Public Sector Companies or Public-Sector Undertakings are the names of the companies that the federal government owns and operates. Either the Central Govt or a single State Government might maintain it. There are 365 public service enterprises in India. As with the Railways, a couple of of those PSUs are managed by Parliamentary ministers.

(*10*)

People will discover and comprehend the significance of public sector corporations on this textual content. You will perceive their perform out there and examples of public sector companies.

Issues With Public Sector Businesses

While the PSU seeks to assist in nationwide development. It is hardly a sector that’s trouble-free. So, these are the issues that Public Sector Enterprises should cope with:

• Inappropriate pricing practices
• Excessive overhead expenditure
• Outdated know-how
• Over staffing
• Trade unions
• Lack of accountability
• Poor and inappropriate funding selections

Classification of Public Sector Enterprises

PSUs are primarily divided into three sectors, specifically:

1. Departmental Undertakings: The authorities plans, funds, and administers these corporations. A minister from the Parliament is answerable for the division. The Indian Railways and the Indian Post are two cases of departmental undertakings.
2. Non-Departmental Undertakings: These embrace government-owned companies and associates. These relate to statutory firms established in accordance with distinctive legal guidelines handed by the Parliament and Legislature. Oil and Gas Companies and Road And transport Corporations are only a few cases of the non-departmental actions.
3. Financial Institutions: Included on this class are companies, together with business banks, funding banks, and brokerage homes. The State Bank of India and the Unit Trust of India are two examples of economic establishments.

A serious ingredient of the Indian economy is the general public sector. These embrace companies and companies offered by the federal government for the advantage of all Indians. The public sector companies are corporations that the federal government owns and manages.

The authorities both fully or partially owns the companies. These companies help the federal government in participating in nationwide financial exercise. Public sector corporations could be managed by both the federal or state governments. It’s known as the Central Public Sector enterprise when the state authorities runs it. However, it’s identified to be a state-level public sector initiative when it’s owned and run by a state.

Goals of Public Sector Organizations

The objective of public sector companies is to work for the betterment of the general public. However, a public sector agency additionally has extra functions, reminiscent of:

1. It contributes to the event of the nation’s industrial base.
2. PSUs assist in creating higher-quality jobs
3. They construct the nation’s basic framework.
4. Public sector companies help in supplying the federal government with assets.
5. They contribute to the nation’s financial improvement and development by reducing inequality.

The prime 10 publicly listed state-owned companies in India are calculated right here. The companies listed below are identified to be the Public Sector Undertakings and are majority-owned by the state (PSU).

1. Oil and Natural Gas Corporation

ONGC, or the oil & pure gasoline corp., is the primary public agency on our listing. The main public sector business in India is that this one. Since its founding in 1956, the Corporation has developed and, in a roundabout way or one other, affected each Indian. Indian Oil’s 2018 revenues, which had been used to compile the 2019 Fortune 500 listing, totaled $77.6 billion, a development of 17.7% from the opposite yr.

Third-largest vitality shopper on the earth, India is dwelling to the state-owned vitality large Indian Oil. Its major business since its founding in 1959 has been refining, shifting, and promoting petroleum merchandise.

The Corporation employs over 33,000 individuals and is the foremost responsibility and taxpayer when it comes to contributions to the nationwide exchequer. The refinery’s throughput grew to 69 MMT within the 2018 fiscal yr from 65.19 MMT the prior yr, whereas its internet revenue elevated 11.72% to 213 Bn Rupees.

On the listing of the five hundred greatest corporations on the earth within the yr 2021, the general public sector firm is 212. It is the largest state-owned oil agency within the nation, with a $6.1 billion internet revenue for the 2020–21 monetary yr. In the nation, IOCL runs ten refineries with complete annual refineries of far more than 60 million tonnes.

Crude oil, kerosene, petrol, and diesel are a couple of of IOCL’s merchandise.

• Revenue: Its staggering $28 billion annual income is rising day and night time.
• Employees: ONGC employs greater than 34,000 individuals each domestically and overseas.
• Presence: The business is current within the Indian coastal space the place drilling happens.
• Important Figures: Sudhir Vasudeva serves to be the chairman. 

2. NTPC

National Thermal Power Corporation, or NTPC, is India’s second-largest public sector business. Because of the electrical energy we obtain, each Indian owes the NTPC. In 1975, the corporate was created. The firm’s major workplace is in New Delhi. The major duties of NTPC are to provide and distribute energy to the Indian State Electricity Boards.

Additionally, the corporate completes turnkey tasks and consultancy contracts for engineering, program administration, constructing companies headquartered, and operation of energy crops.

With a complete capability of 70,084 MW (together with joint ventures), NTPC is India’s largest energy utility. By 2032, it hopes to have 130 GW of capability. NTPC, based in 1975, strives to be the world’s greatest and greatest vitality main.

With its core business of creating energy tasks and producing electrical energy, NTPC has large Rehabilitation & Resettlement and CSR applications which are intently interwoven. By maximizing the utilization of various vitality sources with cutting-edge eco-friendly know-how, the agency is dedicated to producing dependable energy at inexpensive prices in a sustainable method, which helps NTPC contribute to the expansion of the nation’s economy and the advance and development of society.

• Revenue: In 2013, revenues is $12.8 billion.
• Employees: There are roughly 25,000 of them.
• Presence: The firm has totally different workplaces in Patna, Bhubaneshwar, Lucknow, Hyderabad, Mumbai, and Raipur, and its headquarters is in New Delhi.
• Important figures: Arup Roy Chaudhary serves to be chairman and MD.

3. Coal India India

It is the third-most profitable public agency in India. The firm, which is a mining and metals company, was established in 1985. The firm, which is a mining and processing company managed by the Indian authorities, is answerable for offering coal to our thermal plant. Its headquarters are in Kolkata, West Bengal, India, and the Indian Coal Ministry owns it. It is a Maharatna Public Sector Company and the most important coal on the earth.

The Corporation contributes roughly 82% of India’s complete coal manufacturing. With gross sales of Rs 95,435 crores ($13 billion) for the sale of coal in the identical fiscal yr, it produced 554.14 million tonnes of uncooked coal, a rise over its different manufacturing of 494.24 million tonnes.

Coal India Limited, a recipient of massive honors, conducts business in India by large subsidiary corporations, together with Indian Coal Ministry, Western Mining cities Limited, Southern Coalfields Limited, and so forth. About 400 coal mines, most of that are unfold out throughout the nation, are owned by Coal India Limited.

• Revenue: The Corporation generated over $13 billion in income in complete.
• Employees: After the railroads and the navy, it has about 3.5 lac staff, making it one of many largest employers within the nation.
• Presence: The firm has places of work in Jharkand, Nagpur, Bilaspur, Sambalpur, and different coal-mining areas of the nation, along with its headquarters in Kolkata.
• Important figures: The Chairman and MD of the NMDC is S Narsing Rao.

4. NMDC

The National Mineral Development Corporation, typically identified to be the NMDC, is India’s fourth-largest public sector group. The firm extracts diamonds, rubies, and different valuable metals. The Indian Steel Ministry is the proprietor. Participates in exploring minerals like iron, copper, rock phosphate, dolomite, limestone, bentonite, and magnesite.

It produces greater than 35 million iron ore tonnes yearly from three automated mines in Chhattisgarh and Karnataka, making it India’s greatest producer and exporter of the mineral. At Panna in Madhya Pradesh, it runs the one mechanized mining operation within the nation. By mid-2022, NMDC plans to spin off its Nagarnar iron and metal manufacturing unit and listing the brand new agency.

• Revenue: The Corporation brings in about $2 billion yearly.
• Employees: The firm has effectively over 6000 staff.
• Presence: The firm has places of work in Dantewada, Bellary, and Panna and is predicated in Hyderabad.
• Important Figures: C Verma serves to be the corporate’s CMD.

5. State Bank of India

It has added corporations from the banking business in an effort to diversify our listing. It serves to ascertain a steadiness. Despite having a much bigger income than the business acknowledged above, SBI is a financial institution, not an organization. Hence it’s not concerned in manufacturing. The greatest business financial institution in India when it comes to complete assets, deposits, and personnel is the State Bank of India (SBI).

Sponsored by the Indian authorities, it offers loans and advances to companies and people domestically and overseas. SBI is the chosen banker for almost all of public sector firms as a result of it’s state-owned.

SBI offers micro-financing to corporations like self-help teams in distant areas that wouldn’t in any other case have entry to official credit score channels, along with its accomplice banks. SBI offers monetary companies like wealth administration, brokerage companies, asset administration, and insurance by its associates and joint ventures.

• Revenue: SBI’s income has surpassed the $37 billion threshold.
• Employees: India has about 3 lac employees.
• Presence: Although the corporate’s headquarters are in New Delhi, it has places throughout the nation and past.
• Important Figures: Arundhati Bhattacharya serves to be the chairperson.

6. Bharat Heavy Electricals

It is an incredible public firm on our listing is Bharat Heavy Electrical Limited or BHEL. A 1964-founded business that manufactures, designs, assessments, and gives electrical items globally. The following public sector firm is Bharat Heavy Electricals Ltd, which was based in 1964 and produced industrial and electrical works. Boilers, steam generators, transmissions, transformers, and switchgear are a couple of of the corporate’s merchandise. BHEL appears to have greater than 15 manufacturing and upkeep amenities in India, and all of them are in New Delhi. Additionally, BHEL exports a wide range of items to over 20 nations globally.

• Revenue: In 2013, the general income was roughly $9 billion.
• Employees: There are greater than 50,000 individuals which are employed general.
• Presence: The firm has its company headquarters in New Delhi and serves prospects globally.
• Important Figures:B P Rao serves to be the chairman and MD.

7. India’s Steel Authority

India’s Steel Authority generally identified to be the identify SAIL was established in 1954 and is listed eighth on our listing. The firm is the spine of our nation’s metal manufacturing, which is essential to the well being of our economy. One of India’s main metal producers and a Maharatna of the Central Public Sector Companies are Steel Authority of India Ltd. (SAIL).

Five built-in amenities and three explicit metal crops operated by SAIL, primarily in India’s japanese and central areas and close to home uncooked materials sources, produce iron and metal. SAIL manufactures and sells a wide range of metal items.

• Revenue: The firm’s $7.5 billion annual income is rising and rapidly confronted stiff competitors from different personal corporations.
• Employee: More than 10,000.
• Presence: There are places of work in Rourkela, Bhilai, Durgapur, and Bokaro.
• Important Figures: Chandra Shekhar Verma serves to be the chairman

8. Indian Oil Corporation

Indian Oil Corp. is the eighth business on the listing of public sector companies. The Corporation was established in 1964 and is the largest mission within the public sector. Our automobile makes use of solely Indian Oil oil, which is utilized in each drop. On the listing of the five hundred largest corporations on the earth as of 2021, the general public sector group is 212. It is the most important state-owned oil business within the nation, with internet earnings of $6.1 billion for the fiscal years 2020–21.

In the nation, IOCL runs ten refineries with complete annual refineries of far more than 60 million tonnes. Crude oil, kerosene, petrol, and diesel are a couple of of IOCL’s merchandise.

IndianOil, a model with one of many main shopper interfaces in India, overcomes the difficulties of rugged terrain, harsh local weather, and accessibility to offer priceless petroleum to each nook and cranny of the nation by its system of over 56,000 buyer touchpoints.

Or greater than 15,000 KM of cross-country pipelines and 80.55 MMTPA of firm refineries assist the advertising community. Additionally, IndianOil’s R&D Center in Faridabad, one in every of Asia’s greatest downstream petroleum R&D, provides the Corporation a aggressive benefit by cutting-edge know-how and course of options.

Innovating analysis to maximise the worth of hydrogen and different renewable fuels for the nation’s sustainable improvement, IndianOil R&D has additionally performed a serious position.

IndianOil, one in every of India’s most socially acutely aware manufacturers, has efficiently merged its business targets with its CSR purpose. The Corporation has been collaborating with the communities the place it conducts business by funding a variety of applications associated to household welfare, schooling, the surroundings, entry to drinkable water, sanitation, and the empowerment of ladies and different marginalized teams.

• Revenue: The large annual revenue is 75 billion {dollars}. Despite being the largest, we nonetheless ranked this business eighth. The quantity of workers and different components are in charge.
• Employee: Over 37,000.
• Presence: With headquarters in New Delhi and places of work in Assam, Gujarat, and West Bengal, the corporate is current nationwide.
• Important Figures: R S Butola serves as chairman.

9. India’s Power Grid Corp.

India’s Power Grid Corp. is answerable for producing the nation’s electrical energy. This firm got here in ninth on our listing. An Indian public company with its major workplace in Gurugram, India, The Power Grid Corporation of India Limited focuses on bulk energy transmission throughout a number of Indian states. Slightly over half of the electrical energy produced in India is transmitted by the grid. Additionally, it’s PAS 99 licensed: PGCIL is well-established in additional than 15 nations throughout Asia and Africa, and India.

PGCIL conducts business in a number of nations, together with Nepal, Sri Lanka, Bhutan, Myanmar, and the United Arab Emirates.

• Revenue: The firm generates at most $3 to $4 billion in annual income.
• Employees: Nearly 4,000
• Presence: All of India
• Important Figures: S Okay Singh is a key determine. 

10. GAIL

The Gas Production and Handling Company, or GAIL, was established in 1984 and is the ultimate however not the least public sector group on our listing. This business is a market chief in gasoline and oil manufacturing. The Indian Department of Petroleum and Gas is the proprietor. Natural Gas, Hydrocarbon Fluids, LNG Transportation, Petrochemical merchandise, Municipal Oil And gasoline pipelines, Renewable Energy, together with Solar and Wind Power, Petrochemicals, GAILTEL, and Electricity Production are a few of its business segments.

The prime pure gasoline firm in India is GAIL (India) Limited, which has different pursuits in buying and selling, transmission, LPG manufacturing and transmitting, LNG re-gasification, petrochemical merchandise, metropolis gasoline, E&P, and different areas alongside the pure gasoline worth chain. It is the proprietor and operator of a connection of 13,340 km of pure gasoline pipelines that span the entire nation.

To additional enhance the unfold, it’s also executing many pipeline tasks directly. GAIL controls a market share of 70% in gasoline distribution and greater than 50% in gasoline buying and selling in India. The market share of GAIL, its associates, and joint ventures in metropolis pure gasoline pipelines can also be spectacular.

GAIL has a large portfolio within the oil and pure gasoline (LNG) sector. In addition, GAIL is rising its involvement in different vitality sources like photo voltaic, wind, and biofuel.

• Revenue: The firm’s general income exceeds $6 billion.
• Employee: 4000+ personnel, which contributes to its rating of 10.
• Presence: Based in New Delhi
• Important Figures: B C Tripathi serves to be the chairman.

The Function Of Public Sector Companies

Public sector enterprises vastly help the advance of the nation’s financial circumstances. Here are a couple of examples of the monetary contributions made by public sector companies:

Initial Capital Formation, One of the principle drivers of capital formation within the Indian economy has been the general public sector.

1. The public sector is liable for a large a part of the financial output.
2. Employment Opportunities: The authorities sector has majorly modified the economy’s employment sector. It offers residents a number of work choices throughout a spread of financial areas. These adjustments make the advance of the economy and of the inhabitants potential.
3. Regional Development: Public Sector Enterprises has primarily of crops and factories that may assist the socioeconomic improvement of the totally different areas. The development of those advantages the locals within the areas.
4. PSUs. They get from facilities together with township, water provide, and energy.

Reforms in Public Sector Organizations

The public sector has undergone large reforms beneath the Indian authorities. As they create about adjustments within the business, these reforms help in growing the general public sector. Listed under are a couple of public sector reforms:

• 1991 New Industrial Policy
• 1988 Voluntary Retirement Program

Navratna PSUs are the best within the economy as a result of they got independence to handle higher and enhance effectivity. Miniratna PSUs are PSUs which have made income constantly for 3 years. Maharatna PSUs ought to have been Navratnas as a result of they need to have been listed on the Indian inventory change and have a world presence.

Related