New Public Sector Undertakings (PSUs) in India (2014–2025): Driving Growth and Self-Reliance
Since 2014, India has witnessed a renewed thrust towards strengthening its public sector enterprises. The creation of new Public Sector Undertakings (PSUs) across strategic sectors reflects the government’s commitment to enhancing self-reliance, improving infrastructure, and fostering innovation. Between 2014 and 2025, numerous PSUs have been established, contributing significantly to the nation’s economic and strategic ambitions.
Why New PSUs?
The rationale behind forming new PSUs lies in:
- Strategic autonomy in defence and space sectors
- Financial restructuring of existing public enterprises
- Promotion of renewable energy
- Enhancing trade, logistics, and connectivity
- Supporting MSMEs and innovation
Key PSUs Established (2014–2025)
1. NewSpace India Limited (NSIL) – 2019
A commercial arm of ISRO, NSIL was established to market space-based products and services and facilitate private sector participation in India’s space industry. It marks a major step in India’s commercial space aspirations.
2. Sagarmala Development Company Limited – 2016
Set up under the ambitious Sagarmala Programme, this PSU is tasked with enabling port-led development, improving coastal connectivity, and facilitating maritime logistics.
3. NTPC Renewable Energy Ltd – 2020
A subsidiary of NTPC Ltd, this entity is focused exclusively on renewable energy projects, aligning with India’s green energy goals and commitment under the Paris Agreement.
4. Air India Assets Holding Ltd (AIAHL) – 2018
Created as a special purpose vehicle (SPV) to hold the non-core assets and liabilities of Air India, aiding in its eventual privatization and financial cleanup.
5. BSNL Tower Corporation Ltd – 2018
Formed to manage and monetise BSNL’s vast telecom tower infrastructure, supporting the government’s vision of digital connectivity across India.
6. India International Convention and Exhibition Centre Ltd – 2020
Tasked with the development of a world-class convention and exhibition center in Delhi (Yashobhoomi), supporting trade, business tourism, and global events.
7. NSIC Venture Capital Fund Ltd – 2020
This PSU was created to support micro, small, and medium enterprises (MSMEs) through venture capital, encouraging innovation and entrepreneurship.
8. Rajgarh Transmission Ltd – 2020
A company focused on developing and operating power transmission systems, ensuring efficient electricity distribution and grid stability.
9. ITPO Services Ltd – 2020
A support arm for the India Trade Promotion Organisation, this PSU helps manage exhibitions and trade promotion services more efficiently.
10. Concor Last Mile Logistics Ltd – 2020
A subsidiary of Container Corporation of India, this PSU strengthens the logistics supply chain by focusing on last-mile delivery solutions.
Revamp of Ordnance Factories: 7 New Defence PSUs (2021)
In 2021, the Indian government corporatized the Ordnance Factory Board, giving rise to seven new defence PSUs to improve efficiency, competitiveness, and autonomy:
- Advanced Weapons and Equipment India Ltd (AWEIL) – Small arms and artillery
- Armoured Vehicles Nigam Ltd (AVNL) – Battle tanks and armored vehicles
- Gliders India Ltd (GIL) – Military parachutes
- India Optel Ltd (IOL) – Electro-optics and communication
- Munitions India Ltd (MIL) – Ammunition and explosives
- Troop Comforts Ltd (TCL) – Technical textiles and soldier gear
- Yantra India Ltd (YIL) – Mechanical components and engineering systems
These entities signify a landmark shift in India’s defence manufacturing policy by injecting professionalism and fostering innovation in critical defence capabilities.
The creation of PSUs between 2014 and 2025 showcases India’s strategic shift towards modernisation, sustainability, and economic independence. From space to defence, and logistics to renewable energy, these enterprises are paving the way for a more resilient and forward-looking economy. With proper governance and market integration, these PSUs hold immense potential to support India’s aspiration of becoming a $5 trillion economy and a global power.
