Central public sector enterprise
Also called: CPSE · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
A central public sector enterprise (CPSE) is a government company in which the central government and/or other CPSEs hold 51% or more of the shares. Because the Centre holds the majority, it controls the company, even if some shares are sold to the public. The Department of Public Enterprises' Public Enterprises Survey counts about 250-270 operating CPSEs. Profitable CPSEs can earn Maharatna, Navratna or Miniratna status, which gives their boards more freedom to invest and take decisions.
Example
NTPC, ONGC, SAIL and Coal India are CPSEs. The government sells part of its stake in such firms through share sales but keeps at least 51%. So they stay CPSEs.
Don't confuse with
- State public sector enterprise: A CPSE is majority-owned by the central government. A state PSU is owned by a state government, for example a state electricity board company or a state transport corporation.
- Public sector undertaking (PSU): PSU is the broad term for any government-owned enterprise. A CPSE is the central-government category within it.
Related concepts
- Maharatna, Navratna and Miniratna status
- Maharatna status
- Navratna status
- Miniratna status
- Disinvestment
- Minority stake sale
- Strategic sale
- Strategic sector (public enterprise policy)
- Golden share