PSU Performance and Reforms — Prelims Strategy

Prelims Strategy

For Prelims preparation, focus on memorizing specific data points: MOU system weightage distribution (Financial 30%, Operational 35%, HR 20%, Project 15%), PSU classification criteria (Maharatna: ₹25,000 crore turnover, ₹15,000 crore net worth, ₹5,000 crore profit; Navratna: ₹30 crore profit for 3 years; Miniratna thresholds), investment powers for each category, and recent disinvestment transactions with exact figures.

Create a timeline of major reforms from 1987-88 MOU system introduction to 2021 NMP launch. Maintain updated lists of Maharatna (12), Navratna (17), and Miniratna PSUs with their sectors. Practice elimination techniques for tricky questions by understanding common confusions: NMP vs traditional disinvestment, strategic sale vs minority disinvestment, and PSU employee status vs government servants.

Focus on recent developments: Air India disinvestment details, BPCL strategic sale progress, NMP sector-wise targets, and COVID-19 impact on PSU performance. Use mnemonics for complex data and practice previous year questions to identify UPSC's preferred question patterns and trap options.