20 PSUs set up under the Nehru government

At Independence India had no large factories or power plants, and no strong system of its own banks and insurance. The private sector lacked the capital and technology for big tasks such as steel plants or oil exploration. So the Nehru government chose to set up government companies, or PSUs. Nehru called such projects "the temples of modern India".

Industry and steel

ITI was set up in Bengaluru in 1948 to make telephone equipment. HMT came in 1953, making machine tools and later becoming famous for its watches. Hindustan Steel (now SAIL) was formed in 1954 and built steel plants at Bhilai, Rourkela and Durgapur. Heavy Electricals (now BHEL) came in 1956 and the Heavy Engineering Corporation in Ranchi in 1958.

Energy and mining

The Damodar Valley Corporation (DVC) was set up in 1948 for flood control, power and irrigation. In 1956 came ONGC for oil and gas exploration, Neyveli Lignite, and NCDC for government coal mining. NMDC for iron ore mining followed in 1958, and Indian Oil, for selling petrol and diesel, in 1959.

Banking, insurance and transport

In 1955 the Imperial Bank was converted into the State Bank of India to take banking to every village. In 1956, 245 insurance companies were merged to form the Life Insurance Corporation (LIC). In 1953 Air India and Indian Airlines became national air services. The Shipping Corporation was set up in 1961 for sea freight.

Defence, ships and medicine

Hindustan Shipyard in Visakhapatnam was set up in 1952, and Mazagon Dock in Mumbai, where navy warships are built, came under government ownership in 1960. Bharat Electronics (BEL), making radars and electronics for the armed forces, was formed in 1954. The same year Hindustan Antibiotics was set up in Pimpri and produced affordable penicillin. In 1951 Sindri Fertilisers began making fertiliser for farming.

Today

Many of these companies are still among India's largest, such as SBI, LIC, ONGC, Indian Oil and BHEL. Some made losses or closed over time, and many were later renamed or restructured. But these PSUs played a big part in laying the country's industrial foundation.