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Dear Apsirant,
Mechanical and Automation students i.e. graduates definitely can get into the PSUs for career. Only thing is, for entering into PSUs, you will have to appear for the State Public Service Commission or UPSC exams of the concerned department as and when the vacancies are announced. Or you may appear for the Indian Engineering Services exams which is of the level of an IAS and can work in PSUs, other government departments, ministries, etc.
Engineering is very much required in PSUs like Railways, Aviation, Mining, Natural Gas, Petroleum, etc. Therefore when you enter into the second year of your engineering course, it would be better to begin preparing for the UPSC or State Public Commission exams. You can also enrol for a coaching class to help you know and practice.
Another way to get into PSUs is through entry level positions based on GATE score. For example, ONGC announces vacancies for fresh engineers through GATE scores. Reading the Rojgar Samachar / Employment News is highly recommended to get to know about the exams and vacancies all over India.
Best wishes
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