leave encashment exemption for psu employee

Actually PSU are Government owned ( as shares of govt. are more than 51%) companies in which Financial Autonomy is given to the Board Level members.

So One can say that PSU employees are Government employees. Also it can be proved by the fact that as there is also Provision for Pay Revision after every 10 years as it is for Central/State government.

Therefore, we can conclude that the leave encashment will be fully exempt in your case.