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    What is the percentage of the paid up share capital held by the central government or by any state government or partly by the central governments and
    Question

    What is the percentage of the paid up share capital held by the central government or by any state government or partly by the central governments and partly by one or more state governments in Public Sector Undertakings?

    A.

    50% or less

    B.

    60% or more

    C.

    70% or more

    D.

    51% or more

    Correct option is D

    The correct answer is (d) 51% or more

    Explanation:

    • A Public Sector Undertaking (PSU) or Public Sector Enterprise (PSE) in India is a government-owned company.
    • As per the Companies Act, 2013, a company is classified as a PSU if the Central Government, State Government, or both together hold at least 51% of the paid-up share capital.
    • This ensures government control over decision-making and administration.

    Information Booster:

    Types of Public Sector Undertakings (PSUs) in India:
    Central Public Sector Enterprises (CPSEs) – Owned by the Central Government.
    State Public Sector Enterprises (SPSEs) – Owned by State Governments.
    Joint Ventures (JVs) with Government Ownership – Where both Central and State Governments own a share.

    Categories of PSUs:

    • Maharatna PSUs – Large companies with a net profit of ₹5,000 crores+ for 3 years (e.g., ONGC, Indian Oil).
    • Navratna PSUs – Mid-sized profitable companies with autonomy in investment decisions (e.g., BEL, HAL).
    • Miniratna PSUs – Small or mid-sized profitable enterprises (e.g., IRCTC, BSNL).

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