What is PSU?
Public Sector Undertaking
A PSU (Public Sector Undertaking) is a company or corporation majority owned by the central or a state government, and a major buyer through tenders.
What is a PSU?
A Public Sector Undertaking is a company or corporation in which the government holds a majority stake. Central PSUs, also called CPSEs, are owned by the central government, and state PSUs by state governments.
PSUs work across sectors such as oil and gas, power, steel, mining, railways, defence production and telecom. Together they are among the largest buyers of goods, works and services in India.
How PSUs buy
Many PSUs follow their own procurement manuals, approved by their boards, within central guidance such as CVC instructions. Their rules can differ from those of government departments, so read each PSU’s tender conditions rather than assuming GFR rules apply word for word.
PSUs publish tenders on their own e-procurement portals, on CPPP, or on third-party e-tendering platforms, and many also buy on GeM. Policies such as MSE preference and Make in India are generally applied to central PSUs as well.
Tips for bidders
Some PSUs ask suppliers to register or enlist as vendors before they can bid for certain items. Check the vendor registration process early.
PSU tenders are often large and technical, with detailed PQ, integrity pact or vendor approval conditions. Read the special conditions of contract closely.
Common questions
Common questions about PSU in government tenders.
GFR applies directly to central ministries and departments. Many PSUs follow their own board-approved procurement manuals, which often draw on the same principles.
Many do. Whether a particular purchase goes through GeM or the PSU’s own portal depends on the PSU and the item.
A department is part of the government itself. A PSU is a separate company or corporation owned by the government, with its own board and rules.
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