What are Public Sector Enterprises? Explain the categories of PSEs. - UPSC notes

What are Public Sector Enterprises? Explain the categories of PSEs. - UPSC notes

Introduction Public Sector Enterprises (PSEs) are organizations that the government fully or partially owns and controls to promote economic growth, equity, and social welfare. These enterprises operate in diverse sectors, providing essential services, supporting infrastructure, and generating employment. Brief History After independence, India’s government established PSEs as part of its vision for self-reliance and rapid industrialization. The First Five-Year Plan of 1951 marked the beginning of PSEs, with a major emphasis laid down by the Industrial Policy Resolution of 1956 to expand PSEs in core sectors. Classification of PSEs To improve efficiency and autonomy in operations, the Government of India categorized PSEs based on financial performance, market reach, and strategic importance. These categories include Maharatna, Navratna, and Miniratna, each with specific eligibility criteria and autonomy levels. 1. Maharatna The Maharatna Scheme was launched in May 2010 to enable large Centr…