PSU Full form | What is the Full Form of PSU?

psu full form

PSU is not fully owned by government rather government have at least 51% shares in the company. If the government have 51% share or more in a company then it is called as PSU or Public Sector Undertaking. PSU is divided into 3 categories based on their revenue. But, What is the full form of PUS?

PSU full from is Public Sector Undertaking are state-owned enterprises in India. These companies are public companies in which the government has invested the money and the majority of shares are owned are the government. PSU companies are majority-owned by either union government of India or state government of India. PSU is divided into 3 categories based on their revenue.

1.    MaharatnasNavratnas

2.    Miniratnas(Type 1 and Type 2 )

There are 7 Maharatnas, 16 Navratnas, 57 Miniratnas(Type 1), 16 Miniratnas(Type 2).

Salary and benefits in PSU

Indian PSU named ONGC provides the CTC of Rs. 14,50,000 per annum. It is a Maharatna PSU.

PSU full form is Public sector Undertaking provides a very handsome salary to its employees. PSU salary can go from Rs. 45,000 per month to Rs. 1,00,000 per month for fresher who get employment in PSU through GATE exam. Maharatnas PSU provides the best salary among PSUs. 

PSU or Public sector Undertaking companies control the most basic needs of the Indian population like Oil, electricity, coal power, Communication etc. These sectors are very huge and profitable. PSU companies can also be termed as a monopoly as they control these sectors by themselves. PSU like HAL(Hindustan aeronautics limited), DRDO(Defence Research and development organisation), BARC(Bhabha Atomic research centre) and ISRO(Indian space research organisation) control our defence, atomic energy and Space research. These mammoths control our Indian markets in these above-stated fields.

After the new pay commission for PSUs, the salary of PSU has been raised significantly. Now the basic pay in PSU has been increased as well as DA or Dearness allowance has also increased. Due to this, PSU can provide you with more salary then government services and in many cases, it surpasses the private sector as well.

Benefits of working in PSUs-

1. Generous Hardship Allowance-

In PSU like ONGC, its employees need to work offshore duty 24×7 for long times. To compensate for this, ONGC gives them a great allowance. The allowance includes 2 weeks off duty time after working 2 gruelling weeks on offshore duty.

2. Medical cover-

You can get 100% medical cover for you and your family during your job and even after retirement. This makes you sure that your medical situations are covered by your company.

3. Higher education Chance-

Few PSU companies have tied up with different premier institutes which will provide you with the opportunity to complete M tech or MBA during your employment in the PSU company. This is done by NTPC.

4. Soft Home loans-

Many PSU provides soft home loans with very little interest rates. The interest rates for these soft home loans are 3% to 4%.PFC provides home loan up to Rs. 20,00,000 to its employees.  

5.Free schooling and other recreational activities-

PSU like MECON provides free school facility for its employee’s children. You can get free schooling from class nursery to class 12th. Not only that, but engineering consultant also get homes for them. They also get stadiums, Kala Kendra, clubs inside their township. So basically they get every basic amenities inside their township.

6. Townships for a living-

Nearly every major PSU have their townships for its employees. These PSU provide every amenities in these townships so that their employees don’t need to travel to outside as in most cases, these townships are located in secluded areas due to PSU working area. So these PSU make sure that its employees get all basic amenities like malls, clubs, school, swimming pool, stadium etc. Basic amenities are covered inside the township.

Dark side of PSU jobs

Every coin has 2 sides. So like a coin, every PSU or Public sector Undertaking have their downside too.

The biggest downside of PSU is that after some time, your growth in PSU will be stagnated. Means you will start feeling bored due to very slow growth, unlike your private company counterpart where growth is very rapid and quick depending upon your work style. Soon the employee will not find any challenge in their work environment. The salary raise is also not that much and very slow. Promotion in PSU is dependent upon your seniority level and it also depends upon how much you respect and follow your senior. 

Many times, you will be working out your main domain. Suppose you get double-digit rank in your GATE examination but after joining PSU you will need to work in a field which is not at all related to your main domain like computer science or Mechanical engineering.


PSU is also not freed from corruption. You will face many instances where you can see that your superior is indulging in corrupt practises but you can’t do much as PSU is not owned by any person rather then it is owned by the government as well as some part is owned by private firms. If you try to complain about your corruption, then there is a very high chance that your career can suffer for it. It will be a double-edged sword for you.

Promotion are Fixed

Fixed promotion is also very painful for its employees. No matter how great you perform or how great you have done something, your colleague and you both will get promotion together as promotions are fixed in PSU. This is also one of the reasons that people will feel not motivating enough to give their best in their company.

People who have an entrepreneurial spirit will suffer the worst inside the PSU due to the boring nature of PSU. Majority times, you will get the worst department where you need to work your ass off but you will not get any extra reward for that due to fixed promotion. Your new ideas will be worthless in the majority of cases. Your new ideas are waste as these PSU operate on a very strict way and don’t support the induction of new ideas.


So this is the life inside PSU. PSU is like a double edge sword. It can benefit you extremely if you don’t have huge ambitions in life and just want to enjoy your life. It will be a heaven for you as your work-life balance will be great. You will get better salary compared to other government services. You will get many allowances and benefits throughout your career in PSU. 

However, if you are over-ambitious and enjoy big challenges then PSU can break your heart as it will become very boring for you and you will leave it soon to join any other private company which can provide you with a life of challenges and huge rewards.

It’s all about your life goal and choices. PSU can be very rewarding a terms of experiences and money value. After all these companies work in very high demanding sectors. ONGC is quite famous for its salaries and working benefits whereas PSUs like HAL works on development of state of art technologies like Fighter aircraft, Fighter Helicopter, Transport Aircrafts and other avionics for Indian Air force and other air forces as well.

Q&A on PSU

Q1. What is the full form of psu

Ans.1. PSU full form – Public Sector Undertaking, Also PSU full form in Hindi is “सार्वजनिक क्षेत्र का उपक्रम”.

Written by-Aditya Soni

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Written By-Aditya Soni

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