ABSTRACT: Public sector enterprises considered to be vehicles for growth showed poor performance during the eighties and called for measures for improvement.But two decades later the policy changes have brought about a change in the working of these enterprises. The union budget 2014-15 had mentioned that the PSUs would invest through capital investment a total sum of Rs.247941 crores in the then financial year. Taking a a macro view of the operations of the PSUs we can see that there are 235 operational enterprises and 63 new which have to start operations. Gross turnover of Rs.2066057 and Rs. 1995902 crores can be seen in the years 2013-14 and 2014-15 respectively. Besides this taking a look on the internal sources of financing for the year 2013-14 it can be seen that the entire cognate groups of PSUs has a total of Rs. 8259090 Lakhs as retained earnings. Satisfactory accumulated earnings are an indicator of good performance.