More and more pass-outs from business schools are flocking to top public sector companies due to job security, improving prospects of firms and headwinds faced by the private sector, especially those in the highly leveraged sectors like telecom, real estate, power and other infrastructure, business body Assocham has said.

The number of intake by public sector undertakings (PSUs) from the business schools, more so those outside the Indian Institutes of Management (IIMs), has gone up by 160 per cent this season over the last year, said. D. S Rawat, Secretary-General, The Associated Chambers of Commerce and Industry, while releasing its paper on "PSUs back in reckoning".

The survey sample included over 500 students from various B-schools, including IIMs, BITS, ICFAI Business School and Symbiosis Institute of International Business, Pune. The survey, conducted in June-July 2014, found that more than 65 per cent of respondents preferred the public sector over the private.

There is a big increase in the demand for jobs in public sector undertaking (PSUs) this year. The number of job applicants for such jobs has increased by over 160 per cent this year. Also, there is a steep rise in the management trainee jobs in public sector in the last one year (120 per cent).

As per the current findings, SAIL received nearly 2.2 lakh job applicants this year from various B-schools which is much higher than in last year (1.2 lakhs). Similarly, ONGC also received 1.5 lakhs job applications this year, an increase of 120 per cent over the last year. NTPC (1.2 lakh), Indian Oil Corporation (98,000), Gas Authority of India Ltd (91,000), Hindustan Petroleum Corporation Ltd (88,000), Bharat Petroleum Corporation Ltd (75,000) etc. also received the maximum job applications this year, higher than last year.

Over 65 per cent students said their first choice would be to join PSUs and Central government jobs. The top picks for them include ONGC, IOC, NTPC, HPCL, BPCL, SAIL and leading PSU banks like the State Bank of India (SBI).

With the improved Sixth Pay Commission-recommended salaries and announcement of the next Pay Commission, due to give its report in 2016, government jobs have become more attractive and lucrative.

The PSUs now offer annual packages of nearly ₹10-12 lakh, higher than the average starting salary of ₹7-8 lakh in the private sector offers for fresh engineering graduates and pass outs from B-schools. Apart from salaries, a number of special allowances, over and above normal allowances, are paid to the officers.

“Campus hiring by state-owned companies has increased disproportionately”, Rawat said.

Most passing out students this year have opted for PSUs since these are among the best options in the present scenario. There is a marked change from the trend of the past few years, when most students lapped up offers from private investment banks, FMCGs, private sector units or consultancy firms.

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