what is the difference between public sector utility and public sector undertaking?
This was a question i and my friends were discussing during our luch hour!
I'm asking this question because recently Indian Govetrnment has disinvested in many of its undertakings and now the word PSu is synonimus to Public Sector Undertaking like the BSNl, NTPC, etc.
- la_ciudadistaLv 51 decade agoFavorite Answer
A public sector utility is a company or organization established by the government/public sector involved in universally needed services or commodities that are provided individuals or businesses.
A public sector undertaking (PSU) is any enterprise or corporation established and managed by government not necessarily in the utilities sector. PSU is the term in India, "Government Owned and Controlled Corporation" (GOCC) is the term in the Philippines and "State Owned Enterprise" (SOE) is the term in New Zealand.
Most PSUs all over the world are utilities since it takes a lot of capital to establish a utility such as the NTPC, BSNI.
A public sector utility therefore is a PSU but a PSU is not necessarily a public sector utility.
Governments decide to sell their corporations for various reasons. Perhaps to generate cash, as government policy to divest in all businesses, to make the corporations more comptetitive or to stop the governent from giving subsidies for poor performing companies.Source(s): http://en.wikipedia.org/wiki/State_owned_enterpris... http://en.wikipedia.org/wiki/Category:Government-o... http://en.wikipedia.org/wiki/Public_Sector_Underta...
- 4 years ago
i don't have any idea