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A Comprehensive Guide for the PSU Selection Process

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Author:mukesh

Published: 4/30/2025

Last Updated: 5/20/2025

By Ufaq Ahmed


PSU is one of the ideal career opportunities when it comes to job security, respectable pay packages, and growth. This is the reason why PSU jobs attract lakhs of aspirants every year.

 Though every aspirant wants to crack the PSU exam, the reality is the PSU selection procedure can be difficult and competitive. 

However, in this article we will provide you with thorough information about the PSU Selection Process.


Overview of PSU Exam


PSU (Public Sector Undertaking) is one of the government-owned organizations. However, on the basis of different levels of Government ownership, PSU is divided into 2 categories:

1. Central Public Sector Undertaking (CPSUs) are owned by the central government.

2. State Public Sector Undertakings (SPSUs), owned by state governments.

However, depending on financial growth & performance, PSU is further categorized into Maharatna, Navaratna, and Category I and II.



  Category

Eligibility

    Advantages



Maharatna

Three-year average of:

 - profit over ₹2,500 crore, or


- worth of ₹10,000 crore, or

- Turnover of ₹20,000 crore 



Can invest ₹1,000–₹5,000 crore or up to 15% of net worth in a project.



Navaratna

 

Score 60/100 on key parameters like net profit, net worth, manpower cost, PBDIT, capital employed, etc.

 

 

Can invest up to ₹1,000 crore or 15% of net worth per project, capped at 30% annually (max ₹1,000 crore).





Miniratna

Category 1: Must have made profits for the last 3 years or earned ₹30+ crore net profit in any one of those years.

 

Category 2: should have a positive net worth and have consistently generated profits for the past three years.

Category 1: as much as ₹500 crore or the lesser of their net worth.

 

Category 2: up to 50% of their net worth, or up to ₹300 crores, whichever is less.

 

PSU Exam Pattern


Young people are drawn to careers in PSUs (public sector undertakings) due to their prestige and many benefits. 

Let's examine the PSU recruitment stage. The qualifying requirements for hiring at various PSUs vary, including age restrictions, GATE scores, experience, and educational background.


PSU recruitment stage through GATE


  • Appear for GATE in a relevant discipline (e.g., Mechanical, Electrical, Civil).


  • Apply separately to PSUs when they release recruitment notifications.


  • Shortlisting based on GATE score (usually 70–85% weightage).


  • Discussion (GD) or Group Task (GT): Candidates are evaluated for communication, teamwork, and leadership.


  • Personal Interview (PI)—Covers technical knowledge and HR-based questions.


  • Document verification and medical examination before final joining.


 PSU recruitment stage without GATE


GATE scores are not always used for hiring by all PSUs. Some hire applicants by:

  • Written assessments or online examinations administered by PSU


  • Placements on campus at specific universities, such as IITs.


  • Internal hiring of seasoned experts


Tips for Achieving Success in the PSU Selection Process


  • Focus on the basic technical subjects that are relevant to your area of expertise.


  • Practice GD/PI through simulated sessions to boost your confidence.


  • Stay up to date on current affairs, especially for PSU jobs in human resources or management.


  • While enrolled in B.Tech or PGDM programs, build strong foundations.


Why Choose a Career at PSU?


  • Regular sales and timely promotions


  • Work-life balance and established work schedules


  • Pension plans and health benefits


  • Prestige and social respect


  • Opportunities for further education and overseas assignments


Conclusion

Understanding the PSU exam pattern is crucial for every aspirant aiming to secure a job in the public sector. From GATE-based shortlisting to group discussions, interviews, and document verification, each recruitment stage demands thorough preparation and clarity of purpose. 

With a structured approach and strong technical foundation, candidates can successfully navigate the competitive PSU recruitment process and unlock a stable, rewarding, and prestigious career in the public sector.



Frequently Asked Questions (FAQs)

Q1: 1. What is the PSU selection process through GATE?

Ans: GATE score-based shortlisting → GD/GT → Personal Interview → Document & Medical Verification.

Q2: 2. Are there PSUs that recruit without GATE?

Ans: Yes, some PSUs conduct their own written exams, use campus placements, or hire experienced professionals.

Q3: 3. How to prepare for the PSU selection process after GATE?

Ans: Practice technical interviews and GD sessions, and stay updated with current affairs.

Q4: 4. What is the eligibility for the PSU exam process?

Ans: A valid GATE score, age limit (varies by PSU), and a degree in the relevant discipline.

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