Full Form of PSU:
Public Sector Undertaking
PSU Full Form is Public Sector Undertaking. In India, corporations that are owned by the government are known as Public Sector Undertakings or PSUs. The majority of the share capital is controlled by any state government or by the central government or partly by one or multiple state government and partly by the central government. The audit of companies owned by the government is done by CAG or Comptroller and Auditor General. The auditor can be appointed by CAG. Also, CAG can direct the manner by which the accounts of the company will be audited by the Auditor.
PSUs can be classified as PSBs or Public Sector Banks, CPSEs or Central Public Sector Enterprises and PSEs or Public Sector Enterprises. CPSEs are further divided into non-strategic and strategic. Strategic areas include Arms and ammunitions, warships, defense aircraft and defense equipment and Railway transport. All other areas in CPSEs come under non-strategic.
PSUs have a large hand in the Industrial development of India. Making profit is not a major concern for the public sector. Hence, they play an important role in activities that helps in building the nation, which aids in taking the economy in the correct direction. PSB or Public Sector Banks help in the progress of the agricultural economy, thereby aiding in the development of the rural India.